Forget AI Stocks: This REIT Could Be Your Ticket to AI Profits

2 hours ago 1

Matt DiLallo, The Motley Fool

Sun, February 1, 2026 astatine 1:50 PM CST 4 min read

AI stocks person been the blistery commercialized implicit the past year. Companies similar Nvidia person made a mint by processing GPUs and different chips for information centers grooming AI models. The semiconductor's information halfway gross has exploded 66% implicit the past year. That has helped thrust a astir 50% surge successful Nvidia's banal terms successful the past 12 months.

However, the Nvidias of the satellite aren't the lone summons to AI profits. AI companies request carnal existent property to location each their Nvidia Blackwell GPUs and different tech hardware to enactment their AI ambitions. That's opening the doors to a generational value-creation accidental for Prologis (NYSE: PLD) to leverage its expertise successful constructing powered gathering shells to currency successful connected the AI megatrend.

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A idiosyncratic successful a information center.

Prologis is 1 of the world's largest existent property concern trusts (REITs). It has a astir irreplaceable portfolio of astir 5,900 buildings totaling 1.3 cardinal quadrate feet crossed 20 countries. Prologis has developed galore of these buildings from the crushed up.

The starring industrial REIT's improvement acquisition has led it to physique a immense onshore slope to enactment its aboriginal growth. It has capable onshore to enactment $42.6 cardinal successful full aboriginal investments. Prologis has besides go a person successful installing star and artillery retention systems astatine its sites to supply for its customers' powerfulness needs, installing implicit 1 gigawatt (GW) crossed its portfolio.

Prologis's acquisition successful constructing powered gathering shells has led it to commencement investing processing information centers. It's gathering these facilities connected immoderate of its onshore bank.

The satellite needs to put a staggering $7 trillion successful information centers by 2030 to support gait with the maturation successful compute power, according to McKinsey Research. Prologis is moving to unafraid a portion of this monolithic opportunity. It has started processing modern AI-enabled buildings to suit the needs of large-scale information halfway operators. It volition physique facilities from the crushed up oregon person existing warehouses to information centers.

Prologis believes that it tin physique up to 10 GW of information halfway capableness implicit the adjacent decade. That would necessitate an concern of $30 cardinal to $50 billion. The institution estimates that this concern has the imaginable to make $7.5 cardinal to $25 cardinal successful worth for its shareholders. That's owed to the precise lucrative economics of information halfway improvement projects. While each task costs $150 cardinal to $500 cardinal (much higher than a warehouse, which costs betwixt $25 cardinal and $75 million), the improvement yields are besides overmuch higher astatine 7.5% to 10% compared to 6%-7% for a warehouse development.