Blackstone Building a $25 Billion Empire of Power-Hungry Data Centers
Blackstone is playing its classic playbook for real estate—a move deployed in everything from warehouses to suburban homes:
- Identify where there's a rising need for properties but too few to meet demand.
- Direct billions of investor $ to build giant landlords poised to capture big rents & market share.
After its $10 billion takeover of data center operator QTS in 2021, world's largest private equity firm is fueling rapid growth at one of the top landlords for tech giants.
The company has parlayed its land reserves to profit on a short supply of space and power in key markets. QTS has $15 billion of properties in development, up from $1 billion at the time of its acquisition. It's become North America's largest provider of leased data center capacity based on megawatts under contract, after ranking No. 4 just three years ago, according to research firm datacenterHawk.
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