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Blackstone's QTS Realty Trust Secures $1.65 Billion for Data Center Expansion
ByAinvest
Wednesday, Aug 13, 2025 2:32 pm ET1min read
Blackstone's QTS Realty Trust has secured $1.65 billion in private bonds to fund data center expansion in the US. This move highlights a growing trend in AI infrastructure credit. JPMorgan estimates that US data centers will need $150 billion in permanent financing in 2026 and 2027. Private lenders like Blackstone are well-positioned to capitalize on this demand.
In a significant move reflecting the growing trend in AI infrastructure credit, Blackstone's QTS Realty Trust has secured $1.65 billion through a privately placed sale of high-grade bonds. This funding will support data center projects in the United States [2].The debt, with maturities ranging from five to ten years, underscores the increasing demand for financing in the data center sector. JPMorgan Chase & Co. analysts estimate that US data centers will require $150 billion in permanent financing in 2026 and 2027, highlighting the attractive opportunity for credit investors [2].
Blackstone's acquisition of QTS Realty Trust in 2021 for about $10 billion, including debt, positions the firm well to capitalize on this demand. The deal with QTS Realty Trust is part of a broader trend where tech companies are increasingly turning to private credit for their infrastructure needs. Unlike public debt, private credit offers tailored terms and faster execution, which are crucial for projects requiring rapid scaling [2].
Meta Platforms Inc., for instance, recently secured a $29 billion financing package for its AI-focused data center in Louisiana, with Pacific Investment Management Co. (PIMCO) arranging $26 billion in debt and Blue Owl Capital Inc. contributing $3 billion in equity. This deal, the largest single-project AI data center financing to date, reflects the strategic role of private credit in tech capital projects [3].
The successful completion of these data center projects could potentially reshape Meta's position in the AI field and influence the direction of AI development in the coming years [3].
References:
[1] https://www.datacenterdynamics.com/en/news/meta-taps-pimco-and-blue-owl-for-29bn-data-center-financing-report/
[2] https://www.bloomberg.com/news/articles/2025-08-13/blackstone-s-qts-raises-1-65-billion-of-debt-for-data-centers
[3] https://www.ainvest.com/news/meta-secures-record-29b-ai-data-center-financing-deal-pimco-blue-owl-2508/
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