Blackstone Launches IPO for Data Center REIT

Blackstone’s quest to launch a public data center acquisition business took another big step this week.

Blackstone Digital Infrastructure Trust filed for an initial public offering with the Securities and Exchange Commission on Monday, Bisnow reported. The entity is projecting to issue more than 87 million shares of common stock at $20 each, seeking to raise roughly $1.75 billion.

The IPO is geared toward funding acquisitions of new construction data centers, utilized by hyperscalers and valued between $250 million and $1.5 billion. A number of banks are leading the offering; the company will be led by Nick Pall, fresh off a role as president and chief investment officer of Link Logistics.

Investors in the IPO will be granted additional shares equivalent to 1 percent of their total purchase, rounded down to a whole share. The company is projecting returns between 5.75 percent and 7 percent.

Shares of the REIT are slated to trade under the “BXDC” ticker on the New York Stock Exchange. A Blackstone affiliate is interested in purchasing up to $200 million of shares, according to BXDC’s filing.

Blackstone did not respond to the publication’s request for comment.

Last month, the investment giant registered Blackstone Digital Infrastructure Trust with the SEC, a critical step on the public pathway. At that point, the firm already reportedly began seeking initial investments from sovereign wealth funds and other institutions.

Last year, the private equity giant linked up with Humain, Saudi Arabia’s state-backed artificial intelligence company, on a $3 billion push to build data centers across the Gulf nation. The project is set to be developed through AirTrunk, the Asia-Pacific operator Blackstone and Canada’s pension fund took private for $16 billion in 2024.

Blackstone also acquired QTS Realty Trust for $10 billion in 2021 and has since doubled its valuation, counting more than 75 properties online or under development as of August. That month, the data center arm secured $1.65 billion in financing through bond sales to fund developments across the country.

— Holden Walter-Warner