The Bull Case For Prologis (PLD) Could Change Following Push Into Data Center Conversions for AI Growth

• On October 7, 2025, Prologis, Inc.'s Chief Technical Officer, Sineesh Keshav, spoke at the 17th Annual Silicon Valley C-Level Technology Leadership Summit, highlighting the company's push into technological innovation in logistics real estate.
• The company's recent initiatives to convert warehouses into data centers to meet demand for AI infrastructure reflect a growing convergence of real estate and technology operations.
• We'll explore how Prologis' entry into the data center market could reshape the company's long-term investment outlook.

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Prologis Investment Narrative Recap

To be a shareholder in Prologis today, you need to believe in the continued global demand for modern logistics real estate, the staying power of e-commerce, and the company's ability to adapt its portfolio for emerging trends like AI and data infrastructure. The recent announcement about converting warehouses into data centers signals innovation but does not materially change the short-term catalyst, acceleration in leasing activity following macro policy clarity. Risks tied to slower new leasing decisions and elevated vacancies remain front of mind for the near term.

The most relevant recent announcement is Prologis’ partnership with EV Realty to expand electric vehicle charging infrastructure across its properties. This ties directly into the company's push for value-added services and its strategy to support customers’ transition to next-generation logistics, potentially strengthening leasing momentum as large tenants continue to evaluate long-term real estate needs.

However, investors should also keep a close watch on how persistent high vacancy rates could affect...

Read the full narrative on Prologis (it's free!)

Prologis is projected to achieve $9.7 billion in revenue and $3.6 billion in earnings by 2028. This outlook assumes a 3.0% annual revenue growth rate and a $0.2 billion increase in earnings from the current level of $3.4 billion.

Uncover how Prologis' forecasts yield a $121.45 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community value Prologis between US$103 and US$121.45 per share. While many anticipate growth from the AI and data center push, elevated market vacancies could temper optimism around future pricing power, making it important to weigh a wide range of views.

Explore 6 other fair value estimates on Prologis - why the stock might be worth as much as 9% more than the current price!

Build Your Own Prologis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Prologis research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Prologis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Prologis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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