Prologis, Inc. (NYSE: PLD) Chairman and CEO Hamid Moghadam said the REIT sees a “huge opportunity” to convert some of its assets located in major population centers into data centers that can provide the low latency necessary for the AI inference market.
Speaking at Prologis’ Groundbreakers 2025 event, Moghadam, in a discussion that featured Department of the Interior Secretary Doug Burgum, noted that Prologis has “6,000 buildings in the major population centers in the world that kind of look like data centers, except for the inside. We know how to turn them into data centers, so we're very excited about that infill data center inference opportunity.”
Moghadam said Prologis is spending a lot of time and money on data centers, pointing out that they contribute to the growing demand for energy. “So, the answer to energy and our infrastructure business is very simple—energy from all sources, and then some.”
He pointed out that Prologis’ largest customer, Amazon, has already made a commitment to small modular reactor (SMR) nuclear technology. “I'm hoping that with a streamlined regulatory process, we can have this SMR technology deployed in a serious way by 2027, 2028. It may be ambitious, but I'm hopeful,” he said.
While AI and other technologies can squeeze more energy out of the existing capacity, Moghadam said, that really is only for a few more years. “We've got to add grid capacity, and we've got to add capacity on-premises where these (AI) factories are placed,” he said.