--- title: "Prologis Sees AI Spending Creating Millions of Square Feet of New Warehouse Demand" type: "News" locale: "en" url: "https://longbridge.com/en/news/292937555.md" description: "Prologis (PLD) stock rose after Q2 FFO beat estimates and the company raised its 2026 guidance for the second time. Core FFO reached $1.63 per share, while leasing hit a record of over 67 million square feet. The firm highlighted that AI infrastructure spending drives new warehouse demand, estimating every $1 trillion in data center capex could generate 30-40 million sq ft of logistics demand. Barclays upgraded its price target to $156." datetime: "2026-07-16T17:39:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292937555.md) - [en](https://longbridge.com/en/news/292937555.md) - [zh-HK](https://longbridge.com/zh-HK/news/292937555.md) --- # Prologis Sees AI Spending Creating Millions of Square Feet of New Warehouse Demand **Prologis Inc.** (NYSE:PLD) stock rose Thursday after the logistics real estate investment trust reported second-quarter results that topped Wall Street expectations on funds from operations (FFO), raised its full-year outlook for the second time this year and received a higher price forecast from **Barclays**. Core FFO came in at $1.63 per diluted share, up from $1.46 a year earlier and above the analyst consensus estimate of $1.54. Net earnings increased to $1.13 per diluted share from $0.61 a year earlier. Rental and other revenue rose to $2.183 billion from $2.037 billion a year ago but missed analysts’ estimate of $2.226 billion. Total revenue increased to $2.43 billion from $2.18 billion in the prior-year quarter. Total expenses rose to $1.47 billion from $1.33 billion, while operating income climbed to $1.25 billion from $913 million. ## Leasing Hits Record Prologis signed more than 67 million square feet of leases during the quarter, a company record. Owned and managed average occupancy was 95.0%, while Prologis share average occupancy was 94.9%. Period-end occupancy improved to 95.5%, up 20 basis points from the end of the first quarter. Cash same-store net operating income increased 8.5% year over year, while net effective same-store NOI rose 6.4%. The company also started $1.6 billion of development projects across logistics and data centers, completed $1.8 billion of third-party acquisitions and expanded its data center power pipeline to 5.8 gigawatts. It ended the quarter with $1.77 billion in cash and cash equivalents and approximately $7.6 billion in total available liquidity. Chief Executive Officer **Daniel Letter** said customer demand is broadening as logistics, digital infrastructure and energy needs increasingly intersect, positioning the company for its next phase of growth. ## Guidance Raised Again Prologis raised its 2026 Core FFO guidance to a range of $6.22 to $6.30 per share from its previous forecast of $6.07 to $6.23. The updated range is above the Wall Street consensus estimate of $6.18. The company also increased its net earnings guidance to $4.40 to $4.55 per share from $3.80 to $4.05. It increased its Prologis share average occupancy outlook to 95.25% to 95.75% from 95.0% to 95.75%. In addition, it lifted expectations for development starts, acquisitions, contributions, dispositions and same-store NOI growth. Prologis said artificial intelligence infrastructure is becoming a new demand driver for its logistics business. The company estimates that every $1 trillion spent on data center capital expenditures could generate 30 million to 40 million square feet of incremental warehouse demand, as AI projects require extensive supply chain, manufacturing and logistics support. During the earnings call, CFO **Tim Arndt** said the company’s research suggests that every $1 trillion invested in data center capital expenditures could create 30 million to 40 million square feet of additional logistics demand, providing a “durable multi-year source of growth.” Following the results, **Barclays** analyst Brendan Lynch maintained an Overweight rating on Prologis and raised his price forecast to $156 from $139. **PLD Price Action:** Prologis shares were up 3.93% at $149.05 at the time of publication on Thursday. The stock is trading near its 52-week high of $150.17, according to Benzinga Pro data. _Photo via Shutterstock_ ### Related Stocks - [PLD.US](https://longbridge.com/en/quote/PLD.US.md) - [BCS.US](https://longbridge.com/en/quote/BCS.US.md) - [BARC.UK](https://longbridge.com/en/quote/BARC.UK.md) ## Related News & Research - [REG - Wells Fargo & Co Prologis, Inc. - Form 8.3 - Prologis, Inc.](https://longbridge.com/en/news/293480731.md) - [REG - FIL Limited Prologis, Inc. - Form 8.3 - Prologis, Inc](https://longbridge.com/en/news/293224157.md) - [REG - Janus Henderson Inv. Prologis, Inc. - Form 8.3 - Prologis, Inc.](https://longbridge.com/en/news/293633355.md) - [REG - UBS Asset Management Prologis, Inc. - Form 8.3 PROLOGIS INC](https://longbridge.com/en/news/293228614.md) - [REG - Folio Investments Prologis, Inc. - Form 8 (DD) - PROLOGIS INC](https://longbridge.com/en/news/293200456.md)