Blackstone Strikes Venture to Develop $7 Billion of Data Centers

  • Private equity firm is teaming up with Digital Realty
  • Blackstone has cited ‘AI arms race’ fueling data-center demand
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Blackstone Inc. is expanding its bet on data centers through a new venture with Digital Realty Trust Inc.

The two companies will seek to develop four data-center campuses located in Frankfurt, Paris and Northern Virginia, with an estimated cost of about $7 billion spread over the next several years, according to a statementBloomberg Terminal Thursday. Blackstone will have an 80% stake and contribute $700 million in capital initially, while Digital Realty will own 20% and manage development and day-to-day operations.