Blackstone data center REIT IPO seeks $1.75 billion

Blackstone Digital Infrastructure Trust filed Monday with the U.S. Securities and Exchange Commission to raise as much as $1.75 billion in a U.S. initial public offering, with shares priced at $20 each.

The trust is set up as a real estate investment trust and aims to buy stabilized, tenant-occupied data centers valued between $250 million and $1.5 billion. It focuses on properties with tenants who have investment-grade credit ratings and are large-scale operators. Reuters reports the trust has identified $25 billion in potential deals in places like Northern Virginia, Ohio, Phoenix, Maryland, and Austin.

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As an added incentive, the trust is giving IPO participants extra shares amounting to 1% of their total investment, with any fractional shares dropped to the next whole number. According to the filing, a related Blackstone entity has expressed intent to participate in the IPO for up to $200 million worth of shares, with that figure reduced by the value of any bonus shares allocated.

Day-to-day management of the trust will rest with an affiliated Blackstone entity compensated through a combination of base and performance-based fees. The trust is also positioned ahead of other Blackstone-managed funds when it comes to acquiring data centers that the firm originates.

"With an estimated $1 trillion total addressable stabilized data center market expected over the next five years, we believe the industry represents a substantial investment opportunity," the company said in its filing.

The IPO reflects two priorities for Blackstone, which manages $1.3 trillion in assets: establishing itself as a major investor in AI infrastructure and expanding its investor base beyond institutional clients such as pensions and endowments. Reuters noted that Blackstone has invested over $150 billion in data center assets since 2018.

Blackstone is seeking $1.75 billion in an IPO for its new data center REIT

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