Warehouse Leasing Shifts Toward Data Center-Driven Demand
Summary
EQT says AI capex generates 20%-30% of leasing demand in its portfolio, while STAG reports a 26% share and six-to-seven-year lease terms.
From October 15 to October 28, 2026, EQT (EQBBF) and STAG Industrial (STAG) both said on third-quarter earnings calls that AI and data-center capital spending is creating demand for conventional warehouses. EQT put the share at 20% to 30% of leasing demand in its real estate portfolio, while STAG said data-center-related tenants accounted for 26% of new operating-portfolio leasing.[1][2]
Data centers need a physical supply chain beyond the server hall
Data-center construction and operation create a network of businesses around the facility. Generator and cable suppliers hold inventory, contractors and light manufacturers stage materials, and third-party logistics and spare-parts providers keep stock nearby. These tenants generally need conventional logistics space rather than buildings with the power density of a server hall. Data-center investment can therefore create warehouse demand in the surrounding industrial market.
The effect depends on proximity and duration. A warehouse near a data-center cluster can shorten equipment transfers and maintenance response times. Properties outside the relevant service radius may not capture the same demand. For landlords, the first effects may appear in absorption and occupancy, followed by rent and cash flow through longer leases. The evidence does not show that every industrial market benefits at the same time.
Two portfolios have quantified the new tenant source
EQT management said its real estate data tools track where US data centers are being developed and the warehouse demand that follows. AI-related capital spending now generates 20% to 30% of leasing demand in its real estate portfolio.[1] The figure applies to EQT's own portfolio. It shows that capital spending has become visible leasing activity, but it is not a measure of the entire US industrial-property market.
So I'll give you an example, thanks to the data analytics that we have tools that we've developed in real estate, the tool called the Hard Hat. We can really see the flows in terms of where data centers are being developed in the U.S., and then what that leads to in terms of warehouse demand. And actually 20% to 30% of leasing demand that we're seeing in our real estate portfolio comes from AI-related CapEx.
STAG provided independent quantification. Since the beginning of 2025, data-center-related tenants have represented 26% of new leasing in its operating portfolio, with weighted average lease terms of six to seven years.[2] In the prior quarter, STAG said these tenants had leased 2.3 million square feet. Demand was concentrated in the Midwest, Southeast, and Texas and mainly supported nearby operating data centers.[3] The companies use different measurement scopes, so the percentages should not be added. Both nevertheless point to a new tenant source with multi-year duration.
Location determines whether demand reaches rent and cash flow
Warehouse landlords near data-center clusters are the most likely to see a structural effect. Equipment and operating-support tenants need local inventory and fast response. Owners with the right building size, transport links, and location may achieve better absorption and longer leases. STAG's six-to-seven-year lease term also suggests that this is not only temporary storage during construction.[2] Useful follow-up measures include the share of data-center-related leasing, renewal rents, occupancy, and whether demand expands from construction suppliers to long-term operating services.
The main boundary is that data centers are not a universal industrial-real-estate tailwind. Rexford said data centers are not a material opportunity for its Southern California infill portfolio because these projects carry substantial power requirements.[6] City, power availability, and tenant service radius determine which properties can participate. Even where leasing improves, investors still need to separate data-center spillover from broader manufacturing and logistics demand.
Companies exposed to the same warehouse demand
- EastGroup Properties (EGP): Its Sun Belt shallow-bay portfolio has seen data-center suppliers join the sources of tenant demand, but the disclosure does not quantify the contribution to rent or profit.[4]
- LXP Industrial Trust (LXP): Its Midwest and Sun Belt markets are seeing demand from data-center-related tenants and manufacturing suppliers. Whether that becomes higher occupancy remains unconfirmed.[5]
- First Industrial Realty Trust (FR): It leased an entire newly built 176,000-square-foot Dallas warehouse to a wire-and-cable supplier serving the data-center industry. The transaction confirms use of conventional industrial space, but one lease does not represent the full portfolio.[7]
Sources
[1] Drillr · EQT · October 15, 2026 · FY2026 Q3 earnings call
[2] Drillr · STAG Industrial · October 28, 2026 · FY2026 Q3 earnings call
[3] Drillr · STAG Industrial · July 29, 2026 · FY2026 Q2 earnings call
[4] Drillr · EastGroup Properties · July 23, 2026 · FY2026 Q2 earnings call
[5] Drillr · LXP Industrial Trust · April 29, 2026 · FY2026 Q1 earnings call
[6] Drillr · Rexford Industrial Realty · April 24, 2026 · FY2026 Q1 earnings call
[7] Drillr · First Industrial Realty Trust · July 23, 2026 · FY2026 Q2 earnings call
This article identifies potentially overlooked industry changes and companies. It is not a stock recommendation.