Blackstone Targets $1.75B IPO For Data Center REIT
Blackstone is seeking to raise $1.75B to launch a publicly traded data center acquisition business.
Blackstone Digital Infrastructure Trust filed for an initial public offering on Monday, projecting to issue 87,500,000 shares of common stock at $20 per share.
The IPO will fund the REIT’s acquisition of newly constructed data centers, occupied by “top investment-grade hyperscalers,” valued between $250M and $1.5B. The firm anticipates returns of between 5.75% and 7% or higher, according to its filing with the Securities and Exchange Commission.
To sweeten the offering, the trust will grant IPO investors additional shares equal to 1% of their total purchase, rounded down to the nearest whole share. If successful, the shares will trade on the New York Stock Exchange under the ticker BXDC.
The filing also says that an affiliated Blackstone entity has indicated interest in purchasing up to $200M of shares.
BXDC is led by CEO and President Nick Pell, a 49-year-old who was president and chief investment officer at Link Logistics, Blackstone's industrial arm, until last month, according to his LinkedIn profile.
The offering is being led by Goldman Sachs, Citigroup, Morgan Stanley, Barclays, Bank of America, Deutsche Bank, JPMorgan Chase, Royal Bank of Canada and Wells Fargo.
Blackstone in 2021 acquired data center developer QTS Realty Trust for approximately $10B. It has expanded QTS’ leased megawatts fourteenfold since 2021, positioning the investment to be the asset manager’s most profitable to date, according to the SEC filing.
Blackstone also acquired AirTrunk in 2024 at a $24B valuation. The company is the Asia Pacific region's largest data center provider.
BXDC could serve as a solution to a growing hurdle facing data center developers: cashing out on their projects. Despite a surge in development, sales of North American data centers dropped by more than 50% in the first six months of 2025, according to CBRE.
Blackstone has more than $1.3T in assets under management, spanning real estate, infrastructure, private equity and credit. Since 2018, the company has executed $225B in data center transactions, including more than $150B in asset deals alone.
The Manhattan-based private equity giant has also provided $10B of debt financing to other operators in the sector.
Its publicly traded company would compete with other REITs, such as Equinix and Digital Realty Trust, with which it has a $7B joint venture. BXDC plans to go public as a plethora of new data center operators emerge.
Coatue Management, a $70B investment firm with large stakes in Anthropic and OpenAI, launched a venture to purchase land to develop for data centers, The Wall Street Journal reported last week. The effort, called Next Frontier, has already secured $5.7B in junk bonds as part of a joint venture with Fluidstack for a 430-megawatt data center campus in New Lebanon, Indiana, the WSJ reported.
The total market value of stabilized data center assets in the U.S. has grown from $175B in 2023 to $275B in 2025, according to Blackstone’s filing. By 2030, that figure is expected to more than triple to $1T.
Blackstone didn't immediately respond to Bisnow’s request for comment.
