A recent high-profile discussion between logistics real estate giant Prologis and U.S. Secretary of the Interior Doug Burgum has highlighted the critical role of energy in shaping future technological and economic landscapes. The conversation, held during Prologis's annual "Groundbreakers" event, revealed fundamental insights about energy security, artificial intelligence development, and national competitiveness.
Energy Security as National Priority
Secretary Burgum articulated the White House position that energy security forms the foundation of national security, with energy abundance being crucial for both domestic prosperity and international stability. This perspective reflects growing recognition that energy supply will determine leadership in the coming AI era.
The administration has established a National Energy Abundance Committee, co-chaired by Burgum and Energy Secretary Chris Wright, with three primary objectives:
- Accelerating approval processes for energy projects
- Directing capital toward energy infrastructure
- Supporting private sector energy initiatives
"Energy dominance essentially means having abundant energy supply," Burgum stated, emphasizing that reliable, affordable power is non-negotiable for maintaining technological leadership.
The Corporate Perspective: Prologis's Energy Strategy
Prologis Chairman and CEO Hamid Moghadam presented the company's evolving approach to energy, which has become integral to its logistics real estate business. With clients requiring increasing amounts of power for operations ranging from warehouse automation to data processing, Prologis has transformed its vast property portfolio into energy assets.
The company has implemented several innovative solutions:
- Converting warehouse rooftops into solar generation facilities
- Developing on-site power solutions for data centers
- Building a 150-person energy team to address client needs
"What was once 'location, location, location' in real estate is now 'location, location, energy'," Moghadam observed, noting that power availability has become the primary factor in site selection for major facilities.
The AI-Energy Nexus
The discussion turned particularly urgent when addressing artificial intelligence development. Burgum framed the U.S.-China AI competition as fundamentally an energy race, with computational power being the decisive factor.
"We're in an AI arms race where energy is the ammunition," Burgum stated, highlighting infrastructure challenges that threaten to constrain American AI development. He proposed situating AI data centers near energy production sites to bypass transmission bottlenecks.
Moghadam concurred, revealing that Prologis sees opportunity in converting its 6,000 global properties near population centers into "edge computing" facilities for AI inference processing, where low latency becomes critical.
Balancing Energy Sources
Both speakers emphasized the need for pragmatic energy solutions that transcend ideological debates. While renewable energy plays an important role, they cautioned against over-reliance on intermittent sources that strain grid stability.
"We need to move beyond the false choice between renewables and traditional energy," Moghadam argued. "The reality is we need everything we can get, in abundance."
The dialogue concluded with consensus that solving energy challenges requires unprecedented cooperation between government and industry. As Burgum summarized, "The nations and companies that solve the energy equation will write the next chapter of technological and economic history."