The world is projected to require a $7 trillion investment in data centers by 2030, creating significant opportunities for Prologis (NYSE: PLD), a leading real estate investment trust (REIT). Prologis aims to develop high-demand, AI-enabled buildings to cater to the growing needs of data center operators, leveraging its extensive portfolio of roughly 5,900 buildings totaling 1.3 billion square feet across 20 countries.
To capitalize on this immense opportunity, Prologis plans to invest between $30 billion to $50 billion to develop up to 10 gigawatts (GW) of data center capacity over the next decade. Each project is expected to cost between $150 million and $500 million, promising higher development yields of 7.5% to 10% compared to conventional warehouses, which typically yield 6%-7%. This strategic move is expected to generate between $7.5 billion to $25 billion in value for shareholders.
