Prologis, Inc. (NYSE:PLD) is one of the Best Data Center REITs to Buy According to Analysts.
It is a leading global real estate investment trust focused primarily on logistics and industrial properties, owning, operating, and developing approximately 1.3 billion square feet of facilities across 20 countries on four continents
The company also leverages its prime land bank near urban power infrastructure to develop data center “powered shells,” securing over 5 GW of power capacity, including 450 MW under construction. Recently, on May 7, BMO Capital upgraded Prologis, Inc. (NYSE:PLD) to Outperform from Neutral and raised the price target from $137 to $162. The firm noted that the company has the ability to benefit from data center demand.
BMO also highlighted that in the first quarter earnings, data center suppliers represented around 10% of the company’s new leasing. The firm expects Prologis, Inc. (NYSE:PLD)’s earnings growth to accelerate based on growing data center demand. While we acknowledge the potential of PLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.