Global Industrial Real Estate Leader Converts Illinois Warehouse into Turnkey Data Center

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Dec 11, 2024, 09:00 ET

Prologis and Skybox Datacenters Sell High-Capacity Data Center

SAN FRANCISCO, Dec. 11, 2024 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today announced it has sold a data center development in its Chicago market to HMC Capital (ASX: HMC). Prologis, in partnership with Skybox Datacenters, is converting one of its warehouses into a high-capacity, turnkey data center with a marketed capacity of 32 megawatts (MW).

Warehouse conversions and ground-up development are the keys to the company's data center strategy. This warehouse is held in the U.S. Logistics Fund (USLF), a Prologis co-investment vehicle focused on premier logistics real estate, including higher and better use conversions.

"We see great potential for warehouse conversions in key markets and properties in our portfolio," said Dan Letter, president of Prologis. "The end-to-end capabilities of our unique data center platform enables Prologis to capitalize on this compelling growth opportunity, while delivering outsized returns to our investors and meeting customer demand for digital infrastructure."

Prologis has been rapidly scaling its power procurement to support demand for new data center development. Today, the company has secured 1.6 gigawatts (GW) of power globally and has another 1.4 GW in advanced stages of procurement. Prologis has also been strategically expanding its in-house data center team, with industry veterans Chris Curtis and Laramie Dorris joining the company this year. With 490 MW under construction, Prologis is one of the leading data center developers in the industry.

"We are working with the largest hyperscalers and generative AI thought leaders to facilitate their growing data center needs," said Chris Curtis, global head of data centers for Prologis. "Because we have the world's largest portfolio of warehouses, our in-house expert team is identifying higher-value conversion opportunities across our approximately 5,600 buildings and 12,400 acres of land. We have delivered 29 projects dating back to 1999."

HMC Capital CEO and Managing Director, David Di Pilla, said: "We are proud to be acquiring this world-class turnkey data center, which is located in a tier one market and underpinned by long-term contracted cash flows. This will be a marquee asset for our newly established DigiCo Infrastructure REIT, which will own a AUD$4.3 billion portfolio of data centers in Australia and the United States. The asset is well suited to DigiCo's investment mandate which will target high quality data center assets across the risk return spectrum."

Prologis' Partnership with Skybox
"The data center industry is at a pivotal moment, experiencing unprecedented growth fueled by the demands of today's evolving digital economy," said Rob Morris, CEO of Skybox Datacenters. "By leveraging proven development expertise, innovative design partnerships and deep utility relationships, Skybox and Prologis have delivered a world-class facility in Illinois. Skybox is dedicated to exceeding our customers' expectations as we continue to build our next generation of PowerCampus solutions for the world's largest companies."

Over the next four years, Prologis expects to develop approximately 20 data center opportunities and $7-8 billion in additional investment.

ABOUT PROLOGIS
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At September 30, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (116 million square meters) in 20 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.

SOURCE Prologis, Inc.