In an era of rapid global economic transformation, the logistics industry is undergoing unprecedented changes. Traditional distribution centers can no longer meet growing demands, as the logistics hubs of tomorrow evolve into intelligent, energy-self-sufficient ecosystems. As the world's leading logistics real estate investment trust, Prologis stands at the forefront of this revolution, actively shaping the future of smart supply chains.
Energy: The Lifeline of Modern Supply Chains
Energy Abundance as the Foundation for Economic Growth
Energy has become the fundamental driver of modern economies, powering everything from production to transportation. For supply chains, reliable energy access is particularly crucial. During Prologis' recent Groundbreakers event, U.S. Secretary of the Interior Doug Burgum emphasized that the White House's energy strategy focuses on achieving peace and prosperity through energy diplomacy while strengthening domestic energy independence.
"Energy advantage actually means energy abundance," Burgum stated. "We need ample energy to power the next generation of AI innovation and support companies like Prologis and their logistics clients. We need economical, reliable, low-cost, around-the-clock energy now more than ever."
The National Energy Abundance Committee
To achieve energy abundance goals, the White House established the National Energy Abundance Committee to streamline approval processes and direct capital flows, helping private sector companies secure necessary energy resources. Burgum described this initiative as "the foundation for domestic prosperity, overseas peace, and national security."
Prologis' Energy Perspective
Prologis CEO Hamid Moghadam highlighted that while real estate costs represent only 3-5% of total supply chain expenses, the company's long-term partnerships with clients reveal their broader energy needs. "Our clients need energy both within buildings to move goods and during transportation," Moghadam explained. "This naturally draws us into the energy sector."
Prologis has capitalized on its extensive rooftop space to develop solar energy projects, providing clients with cost-effective clean energy solutions. However, the company recognizes that solar alone cannot meet all future demands, particularly for energy-intensive operations like data centers.
National Energy Strategy: Accelerating the Transition
Removing Barriers to Energy Development
Burgum detailed how the National Energy Abundance Committee, which he co-leads with Energy Secretary Chris Wright, aims to break down governmental barriers and accelerate energy projects. He compared the committee to a governor's economic development organization rather than a policy-making body.
"We don't write papers—we work to unleash America's energy potential and support the transformation Prologis is undertaking," Burgum said. "They understand how energy drives every aspect of their business and their clients' operations."
The Importance of Localized Energy
Burgum emphasized that reliable, affordable energy remains fundamental to economic prosperity. He advocated moving beyond ideological debates about energy sources to focus on practical solutions, particularly localized energy production near consumption points.
"When energy can be produced close to where it's consumed—whether through hydro, geothermal, or Prologis' rooftop solar installations—these are excellent solutions," Burgum noted.
The AI Arms Race: Energy as the Decisive Factor
Infrastructure Challenges
Burgum identified America's infrastructure challenges—particularly opposition to pipelines and transmission lines—as critical obstacles in the AI competition with China. He warned that losing this technological race could pose an existential threat to the U.S.
Strategic AI Facility Placement
"We must consider building AI factories—where intelligence is manufactured—near energy production sites," Burgum proposed. "This avoids the lengthy permitting processes for pipelines and transmission lines."
Moghadam echoed this perspective, noting that Prologis clients demand abundant, affordable energy that won't constrain their growth. He highlighted how data centers already face energy limitations, which will only intensify with advanced manufacturing expansion.
"We need to solve this before demand truly takes off," Moghadam urged. "We must overcome resistance to building transmission lines. If you have an AI factory, transmitting electrons and processing information on-site proves more efficient than piping energy elsewhere."
Prologis' Energy Strategy: From Solar to Edge Computing
Prioritizing Energy Solutions
Moghadam revealed that Prologis now employs over 150 staff dedicated to energy initiatives across all business segments, not just data centers. "While location remains important, energy has become the third critical factor in our business equation," he stated.
The Edge Computing Opportunity
Moghadam expressed particular excitement about edge computing's potential. As AI processing shifts from centralized large language models to localized inference near population centers, latency becomes crucial. With 6,000 buildings in major urban areas worldwide, Prologis sees significant potential to repurpose its facilities into distributed data centers.
"This represents a tremendous opportunity for us," Moghadam said. "We know how to transform our buildings into data centers for this emerging edge computing demand."
Prologis: Leading the Logistics Energy Revolution
Through continuous innovation, Prologis is building a more efficient, sustainable, and intelligent logistics ecosystem. By collaborating with government partners and technology providers, the company is shaping the future energy landscape for logistics while laying the foundation for AI-driven supply chain development.
Prologis' comprehensive energy strategy—spanning rooftop solar to edge computing—demonstrates its commitment to delivering reliable, economical energy solutions while advancing the logistics industry's sustainable transformation. As global economic dynamics continue evolving, Prologis remains positioned at the vanguard of this critical industry transition.