Prologis Sells Chicago-Based Data Center Development to HMC Capital

Core Viewpoint - Prologis is strategically expanding its data center capabilities through warehouse conversions and new developments to meet the rising demand in the digital economy [1][2][6]. Group 1: Data Center Development - Prologis recently sold a data center development in Chicago to HMC Capital, converting an Illinois warehouse into a high-capacity data center with a capacity of 32 megawatts (MW) [1]. - The company plans to initiate approximately 20 new data center developments over the next four years, with an investment range of $7 to$8 billion [5]. Group 2: Power Procurement and Capacity - Prologis has secured a total of 1.6 gigawatts (GW) of power globally, with an additional 1.4 GW in advanced procurement phases, and currently has 490 MW under construction [3]. - The company is actively increasing its power procurement capabilities to support new data center developments [3]. Group 3: Market Position and Strategy - Prologis collaborates with major hyperscalers and leaders in generative AI to address their growing data center needs, leveraging its extensive portfolio of warehouses [4]. - The company has identified high-value conversion opportunities across its approximately 5,600 buildings and 12,400 acres of land [4]. Group 4: Industry Growth and Demand - The demand for high-performing data centers is expected to rise due to growth in cloud computing, IoT, big data, and increased requirements for third-party IT infrastructure [7]. - Prologis's focus on data centers positions it well to capitalize on this growth trend, which is favorable for long-term expansion [7].