Blackstone aims to become the global leader in owning and developing infrastructure ready to support the expansion of artificial intelligence. To do so, the private equity giant, together with Canada Pension Plan Investment Board, got his hands on AirTrunk, the Australian data center operator, in a record-breaking AUD$24 billion deal (16,1 billion US dollars), debt included. But before you can celebrate, the purchase will have to get theApproval by the Australian Foreign Investment Review Board, as the deal involves foreign investors. If all goes as planned, this will be Blackstone’s largest investment in the Asia-Pacific region, coming at a time when artificial intelligence and cloud computing are booming.
Blackstone Aims for Digital Infrastructure Leadership
The acquisition of AirTrunk not only enriches the portfolio of Blackstone, which already boasts $55 billion in data centers around the world, but also adds a nice package of facilities in Australia, Japan, Hong Kong, Singapore and Malaysia. And it doesn't stop there: Blackstone has another $70 billion of projects in the pipeline. With a forecast of 2 trillion dollars to be spent globally in next five years, including $1 trillion in the U.S. alone, Blackstone is poised to ride the wave of digital expansion. However, the Blackstone shares fell nearly 3% to $138,14 in pre-market trading.
CPP Investments takes 12%
Meanwhile, AirTrunk has skyrocketed in value during the sales process, which officially began in March, thanks to growing demand for AI capabilities. CPP Investments he stated that, once the agreement is finalized, will own 12% of AirTrunk. “CPP Investments has been investing in the Asia-Pacific data center sector for years and we have seen tremendous growth, fueled by strong demand for digital infrastructure and the increasing adoption of artificial intelligence,” said Max Biagosch, global head of real assets at CPP Investments.
AirTrunk: The King of Asia-Pacific Data Centers
Founded in Sydney in 2015, AirTrunk is now considered the undisputed king of Asia-Pacific data centers, with 11 sites spread across Australia, Japan, Malaysia, Hong Kong and Singapore. Prior to the acquisition, 88% of AirTrunk was controlled by Macquarie Asset Management and from the Canadian Public Sector Pension Investment Board, who have now sold their entire stake. The founder and CEO of AirTrunk, Robin Huda, will retain a share of the company, although the exact amount was not specified. Khuda will continue to lead the company as CEO, as reported.
