Feb 07, 2025 | Posted by Abdul-Rahman Oladimeji
Real estate investment trust Prologis plans to substantially increase its data center portfolio over the coming decade. The company began expanding into the data center sector during the Covid 19 pandemic and often partners with Skybox Datacenters for the actual building of the facilities, which are leased or sold to hyperscalers or other data center operators.
Prologis currently has 1.4GW of secured power for data centers in its pipeline, with another 1.6GW "in the advanced stages of procurement," Dan Letter, president of Prologis, said in an earnings call. He later said that "we've been just getting deeper on our pipeline and have a lot more confidence in the numbers that you've heard. We've got another 1.5GW of applications that are right behind that. But all in, it's 10GW over the next ten years."
Prologis currently has 1.4GW of secured power for data centers in its pipeline, with another 1.6GW "in the advanced stages of procurement," Dan Letter, president of Prologis, said in an earnings call. He later said that "we've been just getting deeper on our pipeline and have a lot more confidence in the numbers that you've heard. We've got another 1.5GW of applications that are right behind that. But all in, it's 10GW over the next ten years."
That 10GW could grow further, he added: "And that doesn't even touch upon the universe of opportunities. This is coming from a portfolio of 6,000 buildings and 15,000 acres of land that we own or control. So the universe of opportunities is much greater than that."
"We have not yet made the decision as to what we're going to do with the capitalization of our data center business long term. Let me tell you what the current thinking is. The current thinking is that we are a developer, and that we'll monetize and sell these assets upon completion. And we use the capital that they generate as a way of expanding our core logistics business. That's the strategy today.
"We have not yet made the decision as to what we're going to do with the capitalization of our data center business long term. Let me tell you what the current thinking is. The current thinking is that we are a developer, and that we'll monetize and sell these assets upon completion. And we use the capital that they generate as a way of expanding our core logistics business. That's the strategy today.