Prologis Transitions to Data Center Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: CNBC
- Data Center Expansion: Prologis aims to scale its data center capacity to 10 gigawatts over the next decade through conversions and new developments, demonstrating its ambition in the digital infrastructure space, which is expected to significantly enhance its competitive edge in a rapidly growing market.
- Strong Financial Performance: In Q1 2026, Prologis reported total revenues of $2.3 billion, a 7.5% increase year-over-year, with net income soaring 66% to $980 million, and core FFO per share rising from $1.42 to $1.50, reflecting improved operational efficiency and robust market demand.
- Record Leasing Activity: The company signed a record 64 million square feet of leases in Q1 and initiated $2.1 billion in new development projects, including $1.3 billion allocated for data centers, indicating a proactive approach to meet customer needs.
- Stock Price Trends: Prologis has steadily risen from a low of $105 in summer 2025 to around $144, with technical indicators suggesting a potential breakout above $148, which could attract more investor interest and signal a new upward trend.
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Analyst Views on PLD
Wall Street analysts forecast PLD stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 145.770
Low
118.00
Averages
134.77
High
155.00
Current: 145.770
Low
118.00
Averages
134.77
High
155.00
About PLD
Prologis, Inc. is a fully integrated real estate company. The Company operates through two segments: Real Estate (Rental Operations and Development) and Strategic Capital. Its Real Estate Segment represents the ownership and development of operating properties. The Real Estate Segment also includes development activities that lead to rental operations, including land held for development and properties under development, and other real estate investments, including renewable energy assets. Strategic Capital Segment represents the management of unconsolidated co-investment ventures. The Company is the general partner of Prologis, L.P. (the Operating Partnership or OP). Through the OP, it is engaged in the ownership, acquisition, development and management of logistics facilities with a focus on key markets in approximately 20 countries on four continents. It operates, manages and measures the operating performance of its properties on an owned and managed (O&M) basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- SpaceX IPO Expectations: SpaceX is set to go public on Friday with a valuation of $75 billion, marking the largest IPO in history, which is expected to inject significant capital into the market, thereby boosting investor confidence and driving growth in related sectors.
- IPO Market Dynamics: So far in 2023, 71 companies have gone public, raising nearly $36 billion, indicating strong demand for emerging enterprises, and SpaceX's IPO is likely to intensify this trend, attracting more investor interest in the tech sector.
- ARK Fund Performance: The ARK Venture Fund holds approximately 11% of SpaceX, with a 4% increase over the past month and over 70% year-to-date, reflecting strong market confidence in SpaceX's growth potential, which may attract more institutional investors.
- Related Stock Performance: Several space-related stocks, such as Iridium Communications and Virgin Galactic, have surged over 100% and 96% in the past three months, respectively, demonstrating investor enthusiasm for the space industry, and SpaceX's IPO is expected to further fuel this investment frenzy.
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Prologis Transitions to Data Center Business
- Data Center Expansion: Prologis aims to scale its data center capacity to 10 gigawatts over the next decade through conversions and new developments, demonstrating its ambition in the digital infrastructure space, which is expected to significantly enhance its competitive edge in a rapidly growing market.
- Strong Financial Performance: In Q1 2026, Prologis reported total revenues of $2.3 billion, a 7.5% increase year-over-year, with net income soaring 66% to $980 million, and core FFO per share rising from $1.42 to $1.50, reflecting improved operational efficiency and robust market demand.
- Record Leasing Activity: The company signed a record 64 million square feet of leases in Q1 and initiated $2.1 billion in new development projects, including $1.3 billion allocated for data centers, indicating a proactive approach to meet customer needs.
- Stock Price Trends: Prologis has steadily risen from a low of $105 in summer 2025 to around $144, with technical indicators suggesting a potential breakout above $148, which could attract more investor interest and signal a new upward trend.
See More
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- Earnings Call Scheduled: Prologis will host a conference call on July 16, 2026, at 9:00 a.m. PT to discuss its Q2 results and market outlook, which is expected to attract investor interest and could impact stock performance.
- Participation Details: Investors can join the call by dialing +1 (877) 897-2615 toll-free from the U.S. and Canada or +1 (201) 689-8514 from other countries, ensuring transparency and timely information dissemination to bolster investor confidence.
- Replay Availability: A telephonic replay will be accessible from July 16 to July 30 using access code 13757425, allowing investors who cannot attend live to obtain key insights, thereby enhancing communication efficiency between the company and its stakeholders.
- Company Overview: Prologis, a leader in the logistics sector, focuses on creating intelligent infrastructure that powers global commerce, emphasizing its innovative capabilities in supply chains and clean energy solutions, further solidifying its market position.
See More
Prologis to Host Q2 Earnings Call and Webcast
- Earnings Call Scheduled: Prologis will host a second-quarter earnings call on July 16, 2026, where senior management will discuss current market conditions and future outlook, likely drawing significant investor interest.
- Accessing the Live Broadcast: Investors can participate by dialing +1 (877) 897-2615 toll-free from the U.S. and Canada or +1 (201) 689-8514 from other countries, ensuring global accessibility for all investors.
- Replay Services Offered: A telephonic replay will be available from July 16 to July 30, allowing investors to listen back using access code 13757425, thereby enhancing information transparency and accessibility.
- Company Background Overview: Prologis, as a leader in the logistics industry, focuses on creating intelligent infrastructure that powers global commerce, showcasing its innovative capabilities in supply chain and clean energy solutions.
See More
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- Data Center Opportunity: Prologis CEO Dan Letter stated that the company's data center business represents one of the largest value creation opportunities in its history, with stock prices rising approximately 30% over the past year due to accelerating AI infrastructure demand.
- Power Supply Expansion: The company has energized 5.6 gigawatts of power in its data center pipeline, and Letter sees substantial additional capacity, indicating Prologis's strong capability to meet customer demand.
- New Project Launches: In the first quarter, Prologis initiated $2.1 billion in new development projects, including $1.3 billion in build-to-suit data center projects, reflecting significant customer interest in its data center offerings.
- Energy Business Growth: Prologis generates approximately 1.3 gigawatts of power through solar and storage projects across its properties, with Letter emphasizing the successful transition of solar from a hobby to a business over the past 20 years.
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- Diversified Business Portfolio: The company has added a scaled strategic capital business, a development platform owning 14,000 acres of land, an adjacent energy business, and a growing data center platform, creating a diversified business mix that promotes compounded earnings and intrinsic value growth.
- Strong Leasing Activity: Prologis has broken leasing records in four of the last five quarters, with Q2 2025 being the only exception due to tariff uncertainties, indicating robust market demand and reflecting the company's leadership position in the industry.
- Data Center Business Outlook: Data center tenants are viewed as a bright spot in the tenant base, with approximately 10% of new leasing coming from data center suppliers who are signing long-term leases, demonstrating confidence in future developments and further solidifying Prologis's market position in this sector.
See More
SpaceX IPO Set to Break Records with $75 Billion Valuation
- SpaceX IPO Expectations: SpaceX is set to go public on Friday with a valuation of $75 billion, marking the largest IPO in history, which is expected to inject significant capital into the market, thereby boosting investor confidence and driving growth in related sectors.
- IPO Market Dynamics: So far in 2023, 71 companies have gone public, raising nearly $36 billion, indicating strong demand for emerging enterprises, and SpaceX's IPO is likely to intensify this trend, attracting more investor interest in the tech sector.
- ARK Fund Performance: The ARK Venture Fund holds approximately 11% of SpaceX, with a 4% increase over the past month and over 70% year-to-date, reflecting strong market confidence in SpaceX's growth potential, which may attract more institutional investors.
- Related Stock Performance: Several space-related stocks, such as Iridium Communications and Virgin Galactic, have surged over 100% and 96% in the past three months, respectively, demonstrating investor enthusiasm for the space industry, and SpaceX's IPO is expected to further fuel this investment frenzy.
See More
Prologis Transitions to Data Center Business
- Data Center Expansion: Prologis aims to scale its data center capacity to 10 gigawatts over the next decade through conversions and new developments, demonstrating its ambition in the digital infrastructure space, which is expected to significantly enhance its competitive edge in a rapidly growing market.
- Strong Financial Performance: In Q1 2026, Prologis reported total revenues of $2.3 billion, a 7.5% increase year-over-year, with net income soaring 66% to $980 million, and core FFO per share rising from $1.42 to $1.50, reflecting improved operational efficiency and robust market demand.
- Record Leasing Activity: The company signed a record 64 million square feet of leases in Q1 and initiated $2.1 billion in new development projects, including $1.3 billion allocated for data centers, indicating a proactive approach to meet customer needs.
- Stock Price Trends: Prologis has steadily risen from a low of $105 in summer 2025 to around $144, with technical indicators suggesting a potential breakout above $148, which could attract more investor interest and signal a new upward trend.
See More
Prologis to Host Q2 Earnings Call and Webcast
- Earnings Call Scheduled: Prologis will host a conference call on July 16, 2026, at 9:00 a.m. PT to discuss its Q2 results and market outlook, which is expected to attract investor interest and could impact stock performance.
- Participation Details: Investors can join the call by dialing +1 (877) 897-2615 toll-free from the U.S. and Canada or +1 (201) 689-8514 from other countries, ensuring transparency and timely information dissemination to bolster investor confidence.
- Replay Availability: A telephonic replay will be accessible from July 16 to July 30 using access code 13757425, allowing investors who cannot attend live to obtain key insights, thereby enhancing communication efficiency between the company and its stakeholders.
- Company Overview: Prologis, a leader in the logistics sector, focuses on creating intelligent infrastructure that powers global commerce, emphasizing its innovative capabilities in supply chains and clean energy solutions, further solidifying its market position.
See More
Prologis to Host Q2 Earnings Call and Webcast
- Earnings Call Scheduled: Prologis will host a second-quarter earnings call on July 16, 2026, where senior management will discuss current market conditions and future outlook, likely drawing significant investor interest.
- Accessing the Live Broadcast: Investors can participate by dialing +1 (877) 897-2615 toll-free from the U.S. and Canada or +1 (201) 689-8514 from other countries, ensuring global accessibility for all investors.
- Replay Services Offered: A telephonic replay will be available from July 16 to July 30, allowing investors to listen back using access code 13757425, thereby enhancing information transparency and accessibility.
- Company Background Overview: Prologis, as a leader in the logistics industry, focuses on creating intelligent infrastructure that powers global commerce, showcasing its innovative capabilities in supply chain and clean energy solutions.
See More
Prologis Sees Major Growth in Data Center Business
- Data Center Opportunity: Prologis CEO Dan Letter stated that the company's data center business represents one of the largest value creation opportunities in its history, with stock prices rising approximately 30% over the past year due to accelerating AI infrastructure demand.
- Power Supply Expansion: The company has energized 5.6 gigawatts of power in its data center pipeline, and Letter sees substantial additional capacity, indicating Prologis's strong capability to meet customer demand.
- New Project Launches: In the first quarter, Prologis initiated $2.1 billion in new development projects, including $1.3 billion in build-to-suit data center projects, reflecting significant customer interest in its data center offerings.
- Energy Business Growth: Prologis generates approximately 1.3 gigawatts of power through solar and storage projects across its properties, with Letter emphasizing the successful transition of solar from a hobby to a business over the past 20 years.
See More
Prologis Showcases Strategic Advantages at Nareit's REITweek Conference
- Logistics Facility Expansion: Prologis operates over 1 billion square feet of logistics facilities across more than 20 countries, focusing on curating high-quality assets with high barriers to supply, thereby enhancing the company's long-term value and market competitiveness.
- Diversified Business Portfolio: The company has added a scaled strategic capital business, a development platform owning 14,000 acres of land, an adjacent energy business, and a growing data center platform, creating a diversified business mix that promotes compounded earnings and intrinsic value growth.
- Strong Leasing Activity: Prologis has broken leasing records in four of the last five quarters, with Q2 2025 being the only exception due to tariff uncertainties, indicating robust market demand and reflecting the company's leadership position in the industry.
- Data Center Business Outlook: Data center tenants are viewed as a bright spot in the tenant base, with approximately 10% of new leasing coming from data center suppliers who are signing long-term leases, demonstrating confidence in future developments and further solidifying Prologis's market position in this sector.
See More
