Blackstone plans public company for AI data-centre buying spree

Core Viewpoint - Blackstone Inc. is launching a publicly traded acquisition company focused on acquiring data centers, allowing individual investors to participate in the artificial intelligence boom [1][2]. Group 1: Investment Strategy - The new acquisition vehicle aims to raise tens of billions of dollars, initially targeting sovereign wealth funds and institutions before reaching out to everyday investors [1]. - Blackstone's strategy includes investing in already-built and leased data centers rather than speculative raw land or development projects [3]. - The company aspires for the new entity to serve as a benchmark for the value of data centers, which would facilitate deal-making in the industry [10]. Group 2: Market Context - The data center infrastructure market is projected to require up to $3 trillion in investment by 2030, with Blackstone being one of the most optimistic voices in this space [5]. - Blackstone's data center giant, QTS, has seen its leased capacity grow 14-fold since its acquisition in 2021, indicating strong demand in the sector [6]. - The new company will compete with established data center real estate investment trusts like Digital Realty Trust Inc. and Equinix Inc., which have benefited from the increasing demand for data center resources [4]. Group 3: Industry Concerns - There are concerns regarding the sustainability of the data center building boom and the potential obsolescence of AI training facilities located far from major metropolitan areas [3]. - Questions have arisen about how investors can exit their investments in increasingly large data centers, given the limited pool of investors capable of acquiring such properties [7]. - Some investors have speculated whether Blackstone will use the new vehicle to acquire data centers from its other funds, although executives have indicated this is not the intention [9].