In an era where artificial intelligence is transforming global industries at unprecedented speed, energy has emerged as the critical foundation supporting this digital revolution. Prologis, the world's leading logistics real estate company, is strategically positioning itself at the intersection of energy innovation and supply chain infrastructure through visionary initiatives that promise to redefine industry standards.
The Energy Imperative in Logistics Infrastructure
Recent discussions at Prologis's annual "Groundbreakers" event highlighted the company's forward-looking approach. A notable conversation between Prologis founder, chairman and CEO Hamid Moghadam and U.S. Secretary of the Interior Doug Burgum examined critical drivers shaping modern supply chains, with particular emphasis on energy reliability and artificial intelligence infrastructure.
This dialogue revealed not only Prologis's deep strategic thinking about energy solutions but also aligned with broader federal energy policy directions, offering valuable insights into the company's transformation from traditional real estate operator to integrated energy provider.
From Rooftops to Renewable Power Plants
Prologis recognizes that energy represents both the backbone of economic development and the linchpin for sustainable logistics operations. With artificial intelligence, big data and cloud computing driving exponential growth in energy demand from data centers, automated warehouses and smart transportation networks, the company is fundamentally reimagining its role in the energy ecosystem.
The logistics giant is leveraging its vast real estate portfolio—spanning over 1.2 billion square feet globally—as platforms for renewable energy generation. Rooftop solar installations across its properties now deliver cost-effective power to tenants while serving as testbeds for broader energy innovations including advanced manufacturing and truck electrification solutions.
Energy Abundance: A National Priority
Secretary Burgum outlined the administration's energy strategy focused on maintaining peace and prosperity through what he termed "energy abundance"—ensuring sufficient power generation capacity to fuel next-generation AI innovation. This approach emphasizes supporting industry leaders like Prologis and their logistics customers through reliable, affordable 24/7 energy access.
The newly formed National Energy Abundance Committee aims to accelerate this vision by streamlining project approvals and directing capital toward energy infrastructure. Burgum described the committee as focused on execution rather than policy research, with a mandate to break down interagency barriers that have historically constrained energy development.
Redefining Industrial Real Estate
For Prologis, this energy-focused transformation represents a fundamental evolution beyond traditional real estate services. Moghadam noted that while property costs constitute just 3-5% of total supply chain expenses, the company's long-term tenant relationships provide unique visibility into broader operational needs—particularly around energy requirements spanning facility operations and transportation networks.
This insight has driven Prologis's expansion into energy services and infrastructure development, including data centers that demand power supplies exceeding current renewable capacity. The company advocates for utilizing all available energy sources while investing in next-generation solutions from advanced manufacturing processes to fleet electrification.
The AI-Energy Nexus
Burgum framed America's energy infrastructure challenges as critical to maintaining technological leadership, particularly in the global AI race against China. He emphasized that building "AI factories"—data centers where artificial intelligence is developed—requires fundamentally rethinking energy infrastructure, including locating these facilities near power generation sources to avoid transmission bottlenecks.
Moghadam concurred, noting that all site selection decisions now prioritize energy availability above other factors. While existing grid capacity and smart management through AI can provide short-term solutions, he stressed that expanding generation capacity remains essential for long-term growth—particularly as advanced manufacturing emerges as the next major energy consumer.
The Three-Phase Energy Evolution
Moghadam outlined Prologis's energy strategy as progressing through three distinct phases: first locating operations near existing power supplies; second increasing on-site generation capacity; and third capitalizing on the company's global portfolio of urban logistics centers to support the coming shift from AI training to inference processing near population centers.
This final phase represents perhaps the most transformative opportunity, as Prologis's 6,000 facilities worldwide could be adapted to serve as distributed edge computing hubs—addressing the latency challenges that will emerge when AI processing moves closer to end users.
A New Paradigm for Industrial Development
Prologis's energy initiatives extend beyond corporate strategy to represent a fundamental rethinking of industrial real estate's role in global infrastructure. The company now dedicates over 150 employees exclusively to energy-related projects serving all business lines, not just data center operations.
As Moghadam summarized: "Where it used to be 'location, location, location,' now it's 'location, location, energy.' Because the world runs on energy." This shift positions Prologis not just as a real estate provider but as a critical enabler of the global digital economy's energy needs—a transformation with profound implications for how industrial spaces are designed, located and operated in the AI era.