AI Data Center Growth Drives US Warehouse Rents Higher
JLL reports that AI data center construction is increasing warehouse demand and raising industrial rents in major U.S. freight hubs.
AI data center construction projects are increasing demand for warehouse space and driving up rents across major U.S. freight hubs. According to a third-quarter industrial real estate market report from JLL, average asking rents rose 3.2% year-over-year to $10.55 per square foot, the fastest annual growth since the second quarter of 2024.
This growth is concentrated near Dallas/Fort Worth and Washington, DC, where suppliers and infrastructure providers are clustering near hyperscale campuses. The trend is fueled by billions of dollars in spending from Alphabet, Microsoft, Meta, and Amazon as they compete for AI dominance.
JLL notes that the expansion of infrastructure-intensive industries is shifting the tenant mix. There is now increased demand for industrial space from utilities, telecommunications, and construction firms supporting the data center build-out.
