Blackstone Launches $1.74bn Data Centre REIT IPO

Blackstone is moving ahead with a $1.74 billion U.S. initial public offering (IPO) for a newly created real estate investment trust focused on data centers, as investor demand for AI-linked infrastructure continues to accelerate.

Blackstone Digital Infrastructure Trust plans to offer 87.5 million shares at $20 apiece, including 725,987 bonus shares, according to offering documents released on Monday, 4 May. The vehicle is expected to list on the New York Stock Exchange under the ticker BXDC.

Structured as a real estate investment trust (REIT), the trust will target newly built data centers leased to investment-grade tenants valued between $250 million and $1.5 billion, with a focus on assets benefiting from surging AI demand.

Blackstone’s trust has identified $25 billion in potential near-term acquisition opportunities across major US markets, including Northern Virginia, Ohio, Phoenix, Maryland, and Austin.

The launch comes as data centers have become one of the most sought-after areas in commercial real estate, driven by hyperscalers and technology groups expanding capacity for AI training and cloud workloads.

Investor demand for these assets has subsequently surged as AI growth increases the need for computing power.

“The US IPO market is hitting on all cylinders right now,” Josef Schuster, chief executive of IPOX, said, citing AI and energy-related listings as major drivers of renewed issuance activity.

Blackstone currently oversees around $1.3 trillion in assets and has invested more than $150 billion into data center assets since 2018, making it one of the largest institutional backers of digital infrastructure globally.

The launch is aimed at enabling Blackstone to strengthen its position in AI-related infrastructure while broadening access to its investment products beyond its traditional institutional investor base.

Investors participating in the IPO will also receive bonus shares equivalent to 1% of their investment, while a Blackstone affiliate is expected to purchase shares in the offering.