Blackstone Nears AUD 20 Billion Acquisition of Data Center Giant AirTrunk

Blackstone Group is nearing a deal to acquire Australian data center operator AirTrunk for around AUD 20 billion (USD 13.5 billion), including debt, according to individuals familiar with the matter. This transaction is likely to be one of the largest digital infrastructure acquisitions of the year. Following a bid higher than other contenders, Blackstone has emerged as the preferred buyer for AirTrunk, the sources indicated. The New York-based alternative asset manager is discussing the final details of the deal with AirTrunk's owners, Macquarie Group and PSP Investments. The agreement could be signed as early as this week.

Representatives for Blackstone, Macquarie, and PSP declined to comment.

Last week, reports surfaced that Blackstone had been in talks with banks to secure debt financing to support its acquisition of AirTrunk. It has been competing against a consortium that includes IFM Investors Pty, DigitalBridge Group Inc., Global Infrastructure Partners, and Silver Lake Management.

The Asian cloud services market has been heating up, with KKR & Co. agreeing last year to acquire a 20% stake in Singapore Telecommunications Ltd.'s regional data center business. A year prior, Blackstone launched its first fully-owned platform in Asia related to the industry.

Macquarie has a history of investing in digital infrastructure and is one of the most active companies in the sector. Since 2019, Ani Satchcroft and Ben Way have been instrumental in leading Macquarie's investment in AirTrunk.

According to AirTrunk’s website, the company operates data centers in Australia, Singapore, Hong Kong, Japan, and Malaysia. Previously, in 2020, a team led by Macquarie's infrastructure division took control of AirTrunk in a deal valued at approximately AUD 3 billion. Before that, the company was owned by investors, including Goldman Sachs’ special situations group.