Blackstone Increases Debt for Aligned Data Centers to Over $1 Billion

Blackstone is increasing a debt facility for Aligned Data Centers to over $1 billion to fund the company's data center build-out. The private credit lender provided an initial $600 million in March 2022 and plans to fund an additional five gigawatts of data center capacity across the Americas. Technology companies are sourcing billions of dollars globally to finance data center construction and operation, with private credit firms emerging as key sources of capital.

Blackstone Inc. has significantly increased its debt facility for Aligned Data Centers, elevating it to over $1 billion. This move comes as private lenders continue to pour capital into data centers that support artificial intelligence (AI) development. The credit and insurance arm of Blackstone is providing the senior secured debt, which will be used to fund Aligned's data center build-out [1].

The initial debt facility of $600 million, provided in March 2022, financed an 80 megawatt project in the Salt Lake City area. The upsize will fund Aligned's plan to expand its data center capacity by an additional five gigawatts across the Americas. This expansion underscores the growing demand for data centers to support AI technologies [1].

Aligned Data Centers has raised more than $7 billion in debt and north of $5 billion in new equity from investors including Macquarie Asset Management. The company's focus on AI-specific data centers highlights the increasing importance of these facilities in the tech industry [1].

The trend of technology companies sourcing billions of dollars globally to finance data center construction and operation is evident. Private credit firms, along with traditional banks, have emerged as key sources of capital for these projects. These lenders provide a variety of financing products, including real estate loans and private investment-grade bonds [1].

The deal with Blackstone is part of a broader trend in the data center financing market. JPMorgan and Mitsubishi UFJ Financial Group are set to lead a $22 billion loan facility for Vantage Data Centers' $25 billion data center campus in Shackelford County, Texas. This project, dubbed "Frontier," is one of the world's largest facilities of its kind when completed. The campus will comprise 10 data centers and is backed by private equity firms Silver Lake and DigitalBridge [2].

The increasing demand for AI infrastructure is evident in the series of large-scale financing deals. For instance, Meta Platforms Inc. recently selected Pacific Investment Management Company and Blue Owl Capital to lead a $29 billion financing package for its data center expansion in rural Louisiana. Similarly, Elon Musk's xAI raised $10 billion of debt and equity in July for its Tennessee data center construction [2].

These deals highlight the accelerating pace at which Wall Street is assembling billions of dollars to construct infrastructure essential for AI models. The trend underscores the financial sector's bullish outlook on AI's future and the growing role of private capital in tech financing. As the AI industry continues to evolve, such deals are likely to become more common, reshaping the landscape of tech financing and infrastructure development [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-21/blackstone-lifts-debt-for-aligned-data-center-to-over-1-billion
[2] https://www.fstech.co.uk/fst/JPMorgan_And_MUFG_To_Lead_22bn_Financing_For_Vantage_Data_Centers_Texas.php