Prologis, Skybox Sell Chicago-Area Data Center Project
Prologis Inc. has sold a data center development in Chicago to Australian alternative asset manager HMC Capital.
In partnership with Skybox Datacenters, Prologis is converting one of its warehouses into a high-capacity, turnkey data center with a marketed capacity of 32 MW.
The announcement did not include any further information on the transaction or the property, including its location. However, the Skybox website describes a similar project: Skybox Chicago I, a 10-acre, 190,000-square-foot, 30 MW in the northwestern Chicago suburb of Elk Grove Village, Ill.
Prologis stated that warehouse conversions are a key element of the company’s data center strategy, and that the warehouse in question is held in the U.S. Logistics Fund, a Prologis co-investment vehicle that’s focused on “premier logistics real estate, including higher and better use conversions.”
READ ALSO: Are Data Centers Immune to CRE Market Forces?
In a statement, Chris Curtis, global head of data centers, said that owning the world’s largest portfolio of warehouses gives Prologis the ability to identify higher-value conversion opportunities among the company’s approximately 5,600 buildings and 12,400 acres of land.
Prologis stated that over the next four years, it intends to develop about 20 data center projects, representing $7 billion to $8 billion in additional investment.
Sustained heat
The buyer has acquired the property under its DigiCo Infrastructure REIT, which reportedly intends to amass a AUD$4.3 billion ($2.76 billion) portfolio of data centers in Australia and the U.S.
In May, Commercial Property Executive took the temperature of the rapidly heating data center sector, in which Prologis and Blackstone are leaders among a sizable number of commercial real estate firms looking to take advantage of the AI-driven boom in data center development.
And earlier this month, we looked at the sector again, this time partly through the lens of the White House’s National Security Memorandum on AI.
The post Prologis, Skybox Sell Chicago-Area Data Center Project appeared first on Commercial Property Executive.
