Prologis Secures Approval to Convert Pennsylvania Warehouse into Data Center

Prologis Secures Approval to Convert Pennsylvania Warehouse into Data Center

March 26, 2026

In a move highlighting the industrial real estate sector's strategic pivot towards digital infrastructure, Allen Township authorities have greenlit a plan to repurpose a major warehouse into a data center. This approval underscores the growing demand for scalable data center space, particularly in regions with established utility corridors and logistical advantages, as companies race to build capacity for cloud computing and artificial intelligence workloads.

The Allen Township Board of Supervisors voted unanimously yesterday to grant real estate investment trust Prologis the necessary permissions. The project involves converting a portion of the 1 million square foot (93,000 square meter) Prologis Lehigh Valley East 16 logistics facility, located at 2500 Liberty Drive north of Allentown, into a data center. While specific details regarding the facility's total IT capacity remain undisclosed, local news station WFMZ reported that the design will incorporate a closed-loop cooling system and partially meet its energy needs with on-site solar generation.

Prologis, a global logistics property giant, is among several industrial real estate firms aggressively expanding into the data center market. The company has stated it has approximately 5.2 gigawatts of power either secured from utilities or in advanced negotiations, with a target of reaching up to 10GW of capacity within the next decade. Its current and planned data center developments span key U.S. markets including Ohio, Illinois, Virginia, Georgia, California, Indiana, and Texas, as well as Paris, France.

The conversion of existing industrial buildings represents a significant trend in data center development, offering potential advantages in faster deployment timelines and the reuse of robust structural shells. This project in Allen Township reflects a broader industry shift where capital and expertise from the logistics and industrial sectors are being deployed to address the critical shortage of data center space, though it also brings focus to the challenges of integrating high-power-density facilities into local grids and communities.

Source: datacenterdynamics