Prologis (NYSE: PLD), the world’s largest real estate investment trust (REIT), is expanding into the data center market, investing $25 billion in this sector. The company, which owns 1.3 billion square feet of rentable space across 6,000 properties globally, has recently increased its data center power pipeline to 5.7GW. The global data center market is anticipated to grow from $384 billion in 2025 to over $900 billion by 2033.
Prologis is strategically positioned with significant financial flexibility, an A-rated credit status, and a current valuation of approximately 21 times funds from operations (FFO). It boasts a 3.1% dividend yield, with a projected 6% growth in same-store net operating income and 27% cash rent growth on new and renewal leases. As 3% of global GDP flows through its distribution centers, Prologis could benefit substantially from the accelerating demand for data center infrastructure supporting the AI revolution.
