Prologis sold a data center development in the Chicago suburbs to Australia-based HMC Capital as the logistics giant makes early moves in its quest to become a big player in the data center development space.
The development at 800 Devon Ave. in Elk Grove Village is a former 189K SF warehouse that Prologis and partner Skybox Datacenters are converting to a 176K SF, fully commissioned turnkey data center.
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HMC Capital's purchase comes alongside its November launch of DigiCo REIT, a new digital infrastructure real estate trust focused on data centers, which made Australia's largest initial public offering of 2024, valued at $1.8B.
“We are proud to be acquiring this world-class turnkey data center, which is located in a tier one market and underpinned by long-term contracted cash flows,” HMC Capital CEO and Managing Director David Di Pilla said in a press release. “This will be a marquee asset for our newly established DigiCo Infrastructure REIT.”
Prologis is responsible for finishing the development for HMC, a Prologis spokesperson told Bisnow.
Renovations include the addition of extensive electric utility and fiber infrastructure, upgrades to the roof, electrical and plumbing systems, and the installation of mechanical equipment.
The spokesperson declined to share the price of the deal and directed Bisnow to public records, which hadn't been updated to reflect the sale as of publication. A subsidiary of Prologis purchased the property in 2008 for $24.8M, according to property records.
The move to sell the data center development comes as Prologis told Bisnow earlier this summer it plans to spend between $7B and $8B in the next five years launching its data center business. The company expects to develop approximately 20 data centers.
“We’ve got a 1.2B SF portfolio and $216B of assets under management. At that scale, you have to look at whether your buildings can have other high-value uses,” Prologis Head of UK Paul Weston said in June.
Prologis has 490 megawatts under construction, making it one of the largest data center developers in the industry, it said in the release.
It is also scaling up its power procurement to support demand for new data center development, securing 1.6 gigawatts of power worldwide, with an additional 1.4 GW “in advanced stages of procurement.”
“We are working with the largest hyperscalers and generative AI thought leaders to facilitate their growing data center needs,” Prologis Global Head of Data Centers Chris Curtis said in the release.
“Because we have the world's largest portfolio of warehouses, our in-house expert team is identifying higher-value conversion opportunities across our approximately 5,600 buildings and 12,400 acres of land.”
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