Energy Strains and Cold Storage Scarcity: The New Battleground of U.S. Industrial Real Estate

If you ask what’s driving the next boom in U.S. industrial real estate, you’ll likely hear two answers: data centers and cold storage.

 Both are in short supply in 2025, with rents climbing and tenants competing fiercely for limited space.（jpmorgan.com）

Rising Technical Demands

Data Centers:

 AI and high-performance computing have pushed data centers to new limits. Power density now averages 12 kW per rack, up from 6–8 kW, and many facilities are built with liquid-cooling systems to manage GPU heat.

 Most use a hybrid setup (70% liquid, 30% air), supporting loads over 60 kW per rack. Buildings need stronger floors, redundant UPS systems (N+1 or 2N), and advanced cooling and security to ensure 24/7 uptime.

Cold Storage:

 Cold warehouses focus on temperature precision. Facilities over 50,000 sq ft, with 60% refrigerated or frozen space, run at −20 °C, 0–4 °C, or 13–18 °C for different goods.

 Power use is intense—25–35 W per sq ft, three to five times a standard warehouse—requiring high-capacity supply and full backup. Operators are shifting to ammonia (R-717) or CO₂ (R-744) refrigerants with smart controls to cut energy use.

Efficiency and New Trends

Data Centers:

 Operators are adopting closed-loop liquid and immersion cooling, cutting water use and improving PUE. Smart building systems (BMS) adjust loads in real time, while chip-level cooling is emerging for maximum efficiency.

Cold Chain:

 The cold chain is moving closer to consumers with last-mile hubs and urban micro-warehouses. IoT monitoring, automated storage (AS/RS), and AGVs improve stability and reduce energy loss. Many sites now combine solar and battery storage with natural refrigerants.

Regional Dynamics

• Land: Coastal hubs like Silicon Valley and New Jersey face high costs and limited space; Phoenix and Dallas–Fort Worth offer cheaper land and room for large campuses.

• Power: Electricity costs shape competitiveness. The Pacific Northwest leads with low, clean power.

• Climate: Cool, dry regions support better energy efficiency for both data centers and cold storage.

• Policy: 36 states now offer tax breaks for data centers. Yet stricter environmental rules in places like California are raising build costs.

 Locations combining low power costs, strong grid access, efficient climate, and business-friendly policy are rare. Investors targeting data centers or cold storage must balance immediate rent premiums against long-term operating efficiency.