Key Points:
- Blackstone is the preferred bidder to assume control of data center provider AirTrunk.
- Last week, bidder groups placed final offers, with Blackstone facing off against a consortium led by IFM Investors.
- The deal has yet to be confirmed officially.
Blackstone is reportedly close to finalizing a $13.5 billion deal to acquire AirTrunk, a leading Australian data center operator, in a major move within the AI and data infrastructure sectors.
The New York-based investment management and private equity giant, along with its partner, the Canada Pension Plan Investment Board (CPPIB), has emerged as the preferred bidder for AirTrunk, surpassing rival competitors.
Last week, Blackstone and IFM Investors led the final round of bids for the acquisition. The IFM consortium includes DigitalBridge, GIP, Mubadala’s MGX, and Silver Lake. While the deal has not yet been finalized, Bloomberg reports that discussions are ongoing, with an outcome expected in the near future.
To finance the acquisition, Blackstone has been negotiating with banks for an AUS$5.5 billion ($3.6 billion USD) loan at the holding company level. This loan would complement an AUS$7 billion ($4.6 billion USD) funding package underwritten by four banks and an additional AUS$1.5 billion ($986 million USD) in junior debt provided by private funds.
Blackstone’s Strategic Bet on AI and Data Infrastructure
This acquisition would mark one of the largest digital infrastructure transactions of the year, reflecting Blackstone’s strategic interest in expanding its foothold in the AI and data sectors. AirTrunk, currently owned by Macquarie Group Ltd and PSP Investments, operates data center facilities in Australia, Singapore, Hong Kong, Japan, and Malaysia. Together, Macquarie and PSP control 88% of the shares in AirTrunk and are willing to finalize the sale.
AirTrunk was previously controlled by a group of investors led by Goldman Sachs’ special situations arm, but Blackstone’s interest signals its desire to scale up its data center portfolio.
Blackstone has made significant investments in data infrastructure in recent years, including its $10 billion acquisition of QTS in 2021. The acquisition of AirTrunk is seen as another major bet on the booming AI sector, where demand for data center capacity continues to outpace supply. By investing in one of the leading tech infrastructure providers, Blackstone aims to capitalize on rent yields and increasing market share in the rapidly growing data economy.
If finalized, this acquisition would further solidify Blackstone’s position as a dominant player in global digital infrastructure.