Blackstone Takes Control of QTS Realty Trust Amid $60B AI Infrastructure Boom

Blackstone acquired QTS Realty Trust for $10 billion in 2021 and has turned it into a $60 billion powerhouse in the AI infrastructure boom. Founder Chad Williams clashed with Blackstone's push for faster expansion and was bought out for $3 billion. Blackstone's new co-CEOs, David Robey and Tag Greason, are tasked with executing on a more urgent global playbook. QTS has grown its development pipeline and expanded commissioned capacity, but challenges such as rising tariffs and cautious hyperscale customers are emerging. Blackstone remains bullish on QTS' positioning in the data center space.

Blackstone Group Inc. has transformed QTS Realty Trust, acquired for $10 billion in 2021, into a $60 billion powerhouse in the AI infrastructure space. Under Blackstone's stewardship, QTS has grown its development pipeline from $1 billion to $25 billion and expanded commissioned capacity from 400 megawatts to 3 gigawatts, enough to power over 2 million homes [1].

The acquisition of QTS by Blackstone was not without its challenges. Founder Chad Williams, known for his methodical and people-first approach, clashed with Blackstone's push for faster, more aggressive global expansion. This tension culminated in March 2025 when Blackstone bought out Williams' remaining stake in a deal worth $3 billion. The firm then installed co-CEOs David Robey and Tag Greason, both longtime QTS executives, to execute a more urgent global playbook [1].

Under the new leadership, QTS has doubled its headcount and strengthened its standing with key hyperscale customers like Microsoft (NASDAQ:MSFT). However, challenges are emerging. Microsoft, while still a key partner, has reportedly become more cautious about further commitments in Europe. Additionally, rising tariffs could pressure steel and hardware costs, potentially complicating QTS's expansion strategy [1].

Despite these challenges, Blackstone remains bullish on QTS's positioning in the data center space. A spokesperson for the firm expressed confidence in QTS's ability to capitalize on the once-in-a-generation opportunity in the digital infrastructure sector [1]. The company is now focused on consolidation, operational speed, and strategic restraint under the leadership of Robey and Greason.

Meanwhile, Pennsylvania has emerged as a central arena in America's AI infrastructure race, with state officials and private-sector leaders unveiling a slate of data center and energy investments totaling up to $90 billion. This investment wave positions Pennsylvania as a new frontier for hyperscale development and a strategic player in solving the nation's twin challenges of AI compute and power availability [3].

References:
[1] https://finance.yahoo.com/news/blackstone-ousts-founder-60b-ai-204025089.html
[2] https://www.businesswire.com/news/home/20250605399518/en/Soluna-Announces-Monthly-Business-Update
[3] https://www.datacenterfrontier.com/hyperscale/article/55303578/pennsylvania-raises-its-game-in-the-ai-infrastructure-boom-with-90-billion-investment-wave