CoStar Report Shows Data Centers Fueling Increasing Share of U.S. Industrial Demand

ARLINGTON, Va.--(BUSINESS WIRE)--Aug 26, 2026--

Growth in data center development is fueling an increasing share of U.S. industrial demand, according to a new report from CoStar, the leading global provider of online real estate marketplaces, information and analytics in the property markets.

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Nationally, data center inventory has reached roughly 69 gigawatts of existing capacity, while another 43 gigawatts are currently under construction.

The increase in development activity has impacted industrial demand, with data center-adjacent occupiers accounting for more than 6% of leasing activity across logistics properties within five miles of data center facilities in 2026, up from less than 3% in 2020. Growth has been broad-based across several categories, including construction firms, power and cooling equipment suppliers, operators and IT infrastructure providers.

“The data center industry remains one of the fastest-growing segments of commercial real estate,” said Juan Arias, national director of industrial analytics at CoStar Group. “Vacancy remains near historic lows as demand from hyperscale cloud providers and AI-related users continues to outpace new supply. Hyperscale facilities now account for 64% of existing capacity, underscoring the scale at which major technology companies are expanding their infrastructure footprints.”

Among major markets, Dallas-Fort Worth leads the nation with approximately 10 million square feet of occupied logistics space leased by data center-adjacent industries since 2025. Houston, Atlanta and Phoenix rank behind Dallas, respectively.

“Many of these markets coincide with established or emerging data center hubs where abundant land, infrastructure investments, and relatively favorable power economics have attracted large-scale development,” said Arias. “Operators are increasingly prioritizing locations with access to new electrical generation, substations, and transmission infrastructure as they seek to bring capacity online. As a result, demand is extending beyond data center buildings themselves and into the broader supply chain required to construct and operate them.”

The full analysis can be found here.

For more information about the company and its products and services, please visit costargroup.com.

About CoStar Group

CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Zonda, a leading provider of data, analytics, software, and marketplace solutions for the residential construction industry; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 118 million average monthly unique visitors in the second quarter of 2026, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

CoStar Report Shows Data Centers Fueling Increasing Share of U.S. Industrial Demand

BROWNSVILLE, Texas (AP) — An Immigration and Customs Enforcement officer charged with shooting and wounding a man during the crackdown in Minneapolis then lying about it, could walk free from a Texas jail if a federal judge does not intervene Wednesday.

Christian Castro is charged in Minnesota with assault and falsely reporting a crime in the Jan. 14 shooting of 24-year-old Julio Cesar Sosa-Celis. Minnesota authorities have sought Castro’s extradition since his arrest, but he remains in custody in Brownsville, Texas, a city bordering Mexico.

Under Texas law, Castro must be released after 90 days of detention, which is Thursday.

Minnesota's lawsuit asks U.S. District Judge Fernando Rodriguez Jr. to order Castro's extradition and prevent the Cameron County sheriff from releasing him. The judge said Tuesday he was not inclined to stop the sheriff from releasing Castro, but that he would respond to the temporary restraining order on Wednesday.

Texas filed a motion late Tuesday asking for Minnesota's case to be dismissed.

Castro is accused of firing a gun through the front door of a Minneapolis home, shooting Sosa-Celis in the leg. Prosecutors say Castro also falsely accused Sosa-Celis and another man of attacking an ICE officer with a broom handle and a snow shovel.

At a federal hearing in Brownsville on Tuesday, attorneys with the Minnesota Attorney General’s Office argued it would be hard to compel Castro to face charges in their state if he is released, and they fear Castro may flee the country, citing his phone conversations with a woman who lives in Mexico.

Attorneys representing Texas Gov. Greg Abbott’s office said he had not decided whether to deny or grant Minnesota’s extradition request and therefore the lawsuit was premature.

“I think ripeness is a significant issue,” Rodriguez told attorneys.

Abbott ordered an internal state investigation to determine if Castro can be legally considered a “fugitive.” Trevor W. Ezell, Abbott’s general counsel, also questioned whether the court could impose a deadline for the governor to respond to an extradition request.

“There’s nothing legally left for them to investigate,” Kimberly Ann Svendsen, an attorney representing the Minnesota attorney general, told the judge.

Abbott said last week he would not respond to the extradition request, citing the ongoing investigation into fraud in government social service programs in Minnesota, which President Donald Trump used to justify his immigration crackdown there.

FILE - Hennepin County attorney Mary Moriarty holds up a document containing charges against ICE agent Christian Castro during a news conference at the Hennepin County Government Center in Minneapolis, on Monday, May 18, 2026. (Renée Jones Schneider/Minnesota Star Tribune via AP,File)

FILE - A federal agent wears an Immigration and Customs Enforcement badge in New York, June 10, 2025. (AP Photo/Yuki Iwamura, File)