Prologis finds warehouse demand in the data-centre supply chain

The data-centre building boom has a warehouse side. Reporting third-quarter results on 15 October, Prologis chief executive Daniel S. Letter identified the build-out of the data-centre supply chain as one source of demand for logistics space, alongside e-commerce and advanced manufacturing. The company signed 60 million square feet of leases during the quarter.[1]

Letter did not quantify how much leasing came from that supply chain. His observation is nevertheless revealing: construction creates demand for space among the businesses supplying it. A landlord can participate by accommodating those businesses. Prologis is also pursuing the more direct opportunity of developing data centres.[1][3]

AI helps explain the broader demand. In its 2025 Energy and AI report, the International Energy Agency identified AI as the biggest driver of expected growth in data-centre electricity use through 2030, alongside other digital services.[4]

The established property business provides the starting point: average occupancy across owned and managed assets was 95.1%, and net earnings were $0.86 per diluted share, against $0.82 a year earlier.[1]

A large commitment inside the development programme

For projects started in the first nine months of 2026, Prologis reported $2.034 billion of data-centre investment against $4.089 billion across all development starts, on its proportionate ownership basis. Calculated from the unrounded filing figures, data centres accounted for 49.8% of that total. The figures cover all data-centre uses and represent estimated complete project costs, including land, construction and leasing, rather than cash spent during those nine months. The data-centre starts were fully leased when begun.[2]

The scale makes more sense against the company’s earlier positioning. In July, Letter described logistics, digital infrastructure and energy needs increasingly intersecting. Prologis had already expanded its data-centre power pipeline to 5.8 gigawatts by the end of June. Electricity access was part of its property strategy before the latest quarter began.[3]

At 30 September, that 5.8 GW comprised 1.7 GW covered by binding utility agreements, including 680 megawatts under development, and 4.1 GW still in advanced discussions. Sites remain subject to approvals. The larger total describes a pipeline with different degrees of readiness; it is not operating server capacity. No new data-centre projects entered the starts figures during Q3 itself.[2]

Two routes to the same customer economy

Together, these disclosures suggest a two-part opportunity: accommodate suppliers through warehouse leases, and pursue campus tenants by assembling land, electricity and buildings. Prologis can use its relationships for both, while each follows its own investment timetable.[3][2]

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