PLD · Earnings call · 2026Q3T · Full report

AI Data Center Demand

Prologis, Inc. · 2026-10-15 · Importance 57 · Surprise 42 · In source text

Prologis identified data center supply-chain customers as a rapidly growing source of logistics demand, representing approximately 10% of new leasing globally and 17% in the U.S. during the quarter. Management estimates these customers will require more than 150 million square feet through the end of the decade for facility build-out and ongoing service. Demand is concentrated in Texas, Northern California, Northern Virginia, Arizona and selected Midwest markets, where hyperscalers, manufacturers and distributors are establishing regional ecosystems for just-in-time equipment delivery, light assembly and modular construction. The 17% share of new leasing is strengthening, and customers are generally large, well-capitalized companies signing long-term leases.

Key facts

• Prologis has started over $2 billion worth of data centers this year.
• Prologis' data center pipeline totals 5.8 gigawatts, including 1.7 gigawatts of secured power and 4.1 gigawatts in advanced stages.
• Prologis has letters of intent covering approximately 1 gigawatt of its data center pipeline, much of which is expected to start in 2027.
• Prologis estimated these data center supply chain customers will require upwards of 150 million square feet of demand through the end of the decade.
• Prologis said the 17% figure referenced is the share of new leasing in the quarter for logistics real estate that were data center supplier-related and that this share is strengthening.
• Prologis said data center supply chain customers represented approximately 10% of its new leasing globally and 17% in the U.S. in the quarter.

Impact estimates