Prologis CEO Dan Letter said the company’s growing data center business is one of its biggest opportunities as demand for AI infrastructure accelerates.
“We see data centers as one of the biggest value creation opportunities in our company’s history,” Letter told CNBC’s “Mad Money” on Wednesday.
Prologis, best known as a logistics real estate investment trust, is increasingly positioning itself as an AI infrastructure business. Mr. Letter said the company’s long-standing efforts to cluster land and power near major population centers as hyperscalers race to build data centers has paid off, helping the stock rise about 30% over the past year.
The company already has 5.6 gigawatts of power across its data center pipeline, and Letter believes there is considerable room for expansion.
“Behind the 5.6 gigawatts we’re talking about now, there are many more gigawatts,” Letter said.
Letter, who took over as CEO on January 1, 2026, said customer demand is already reflected in the project. In the first quarter, Prologis initiated $2.1 billion in new development, including $1.3 billion in data center construction projects.
“The depth of customer interest in our data center products is tremendous,” Letter said on the company’s earnings call in April. “We believe our ability to integrate land, power and development expertise is a key differentiator.”
Prologis is also converting its vast real estate footprint into a growing energy business, generating approximately 1.3 gigawatts of electricity through solar power and storage projects across the site.
“We’ve been installing rooftop solar for over 20 years,” Letter said. “About five years ago, we decided to stop doing it as a hobby and turn it into a business.”
