BlackRock Eyeing $40B Acquisition of Aligned Data Centers

BlackRock is closing in on a deal set to shake the data center sector, as well as the business community as a whole.

The firm’s Global Infrastructure Partners is in advanced discussions to acquire Aligned Data Centers, Bloomberg reported. While talks could still fall apart, the deal would value the data center company at roughly $40 billion, which would represent one of the five biggest transactions of the year worldwide.

MGX, an artificial intelligence investment company formed by sovereign wealth fund Mubadala Investment, is reportedly discussing an independent investment as part of the transaction. The company already invested in Aligned and maintains a strategic partnership with BlackRock.

BlackRock declined to comment on the talks.

Plano-based Aligned counts 50 campuses and 78 data centers either under management or in its pipeline across the United States and South America. At the start of the year, investors — including funds from Macquarie Asset Management — committed more than $12 billion in equity and debt.

Data centers have emerged as one of the most sought-after investments across North America. AI-driven infrastructure is in demand as top tech companies rely on data centers to power their computing needs.

There are, however, growing concerns about a bubble in the data center space as valuations surge, spending jumps and construction speeds up. Other issues include environmental impact, fierce local opposition to the facilities and energy companies being drained by data centers, forcing them to hike rates and further stress the electric grid.

GIP, meanwhile, is in a seismic acquisition mode. It’s looking to acquire power company AES Corporation, which has an enterprise value of $38 billion, including debt. GIP also co–owns Dallas-based data center firm CyrusOne with KKR, after taking it private four years ago at a $15 billion valuation.

GIP was itself acquired last year by BlackRock for approximately $12.5 billion.

— Holden Walter-Warner