Prologis (PLD) – A Real Estate Power Play on the AI Boom
While most investors chasing AI exposure have piled into chipmakers like Nvidia, Prologis offers a very different — and potentially more stable — way to benefit from the data center buildout behind the AI revolution. This industrial REIT isn’t designing GPUs, but it’s building the physical infrastructure that AI runs on — and the numbers behind that opportunity are hard to ignore.
Prologis has begun developing modern, AI-enabled data centers, tapping into its vast land bank and deep expertise in powered building shells. With the world expected to invest $7 trillion into data centers by 2030, Prologis estimates it could develop 10 GW of capacity over the next decade — requiring $30 to $50 billion in capital and potentially creating $7.5 to $25 billion in value for shareholders.
That value creation comes from much higher yields. Data center projects cost more than warehouses — $150M to $500M each — but also offer significantly higher development yields (7.5% to 10%, versus 6%–7% for typical logistics projects). With $42.6 billion in land-based development capacity already secured and over 1 GW of solar and battery systems installed across its sites, Prologis is exceptionally well-positioned to support power-intensive AI clients.
Trading around $131, Prologis offers a 3% dividend yield, real asset backing, and exposure to one of the fastest-growing infrastructure trends of the next decade. For investors looking to participate in the AI boom without chasing overheated tech valuations, PLD is worth a serious look.
