Pulse Report: Data Centers Are Reshaping Industrial Real Estate—Atlanta Shows How

Data center construction has become one of the defining demand drivers in industrial real estate. That demand extends well beyond the data centers themselves, into the warehouses and supply chains that support them.

Authors

  • Matthew I. Rand

    Managing Director

  • Victoria Francis

    Vice President, Research & Analytics

  • Phoebe Cai, PhD

    Associate, Research & Analytics

  • Paveena Sachdeva

    Associate, Research & Analytics

   
Research Reports

Research & Analytics Pulse Report

October 08, 2026

Data center construction is driving demand for nearby industrial warehouse space.

According to Link Logistics Research & Analytics, every gigawatt of data center construction generates approximately 2 million square feet of spillover industrial real estate demand. Roughly 80% of that demand is durable, tied to ongoing operations rather than construction staging. With an estimated 100 gigawatts of data center construction in the national pipeline, that points to roughly 200 million square feet of industrial real estate demand over the next five years. 

The trend has gained momentum in 2026. At Link Logistics, approximately 15% of new leasing activity over the past year has come from tenants related to the data center sector. (Link Logistics CEO Luke Petherbridge discussed the phenomenon in August 2026 interviews with Bloomberg Television and The Wall Street Journal.) 

Data centers require dense concentrations of electrical equipment, cooling systems and precision hardware—all of which must be staged before installation and serviced continuously afterward. That need is generating demand for warehouse space across the U.S., from established tech hubs to markets including Memphis, Milwaukee, Reno and Columbus. 

But perhaps nowhere is data-center-driven industrial real estate demand more visible than Atlanta. The interactive map below traces the buildout year by year—and the role played by Link Logistics warehouse space. 

 

 

This has been a Link Logistics Pulse Report, in which the firm's Research & Analytics team examines the market dynamics shaping demand for warehouse space. Future Pulse Reports will continue to offer a unique perspective on the trends and forces shaping industrial real estate.