Blackstone announces record $16bn acquisition of AirTrunk in Asia-Pacific

In a landmark deal, Blackstone Inc. has announced an agreement to acquire AirTrunk, the leading data center platform in the Asia-Pacific region, for an implied enterprise value of over A$24 billion (approximately $16 billion). The acquisition represents Blackstone’s largest investment in the Asia-Pacific region and is a significant move to bolster its global digital infrastructure portfolio. The deal, executed in partnership with the Canada Pension Plan Investment Board (CPP Investments), involves acquiring AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board. The transaction is still subject to approval by the Australian Foreign Investment Review Board.

AirTrunk’s Expansive Footprint in the Asia-Pacific Region

AirTrunk, headquartered in Australia, is known as the largest data center operator in the Asia-Pacific region, with significant operations in Australia, Japan, Malaysia, Hong Kong, and Singapore. It boasts more than 800 megawatts (MW) of capacity committed to customers and owns land that can support over 1 gigawatt (GW) of future growth across the region. The acquisition of AirTrunk positions Blackstone to capitalize on the growing demand for digital infrastructure driven by the digitization of the global economy and the rise of artificial intelligence (AI) capabilities.

Strategic Importance of the Deal

The acquisition is seen as a strategic move by Blackstone to strengthen its foothold in the rapidly growing digital infrastructure sector. Jon Gray, President and Chief Operating Officer of Blackstone, emphasized that the acquisition leverages Blackstone’s global platform to tap into high-growth opportunities in digital infrastructure, a key theme for the company. “This is Blackstone at its best – leveraging our global platform to capitalize on our highest conviction theme,” said Gray.

Sean Klimczak, Global Head of Blackstone Infrastructure, and Nadeem Meghji, Global Co-Head of Blackstone Real Estate, highlighted that the demand for digital infrastructure is experiencing unprecedented growth, driven by the AI revolution and broader digitization trends. Prior to acquiring AirTrunk, Blackstone’s portfolio included approximately $55 billion in data centers, with another $70 billion in prospective pipeline development. The acquisition of AirTrunk is expected to further accelerate this growth, reinforcing Blackstone’s status as a leading investor in digital infrastructure globally.

Future Prospects and Market Dynamics

The demand for data centers has been soaring, fueled by the exponential growth in cloud computing, AI, and the broader digital transformation of industries worldwide. According to industry analysts, there is an anticipated $1 trillion in capital expenditures for building and facilitating new data centers in the United States over the next five years, with an additional $1 trillion expected outside the United States. Blackstone is well-positioned to capitalize on this movement, having previously invested in both the debt and equity of several other data center companies, including QTS Realty Trust, Coreweave, and Digital Realty.

AirTrunk’s Founder and CEO, Robin Khuda, expressed optimism about the future under Blackstone’s ownership, noting that the partnership will leverage Blackstone’s capital scale, sector expertise, and network to support AirTrunk’s continued expansion across various local markets in Asia-Pacific. “This transaction evidences the strength of the AirTrunk platform in a strong performing sector as we capture the next wave of growth from cloud services and AI and support the energy transition in Asia Pacific,” said Khuda.

Broader Implications for the Data Center Industry

The acquisition of AirTrunk by Blackstone is part of a broader trend of rising investment in the data center industry. In 2024, private equity investors have completed deals totaling more than $36 billion in the sector, approaching the record-setting $42.6 billion invested in 2021. This growing trend underscores the critical role that digital infrastructure plays in supporting the modern economy, particularly as businesses increasingly rely on cloud services, AI, and data analytics to drive growth.

This acquisition not only marks a major milestone for Blackstone but also signals a robust future for the data center sector as a whole, especially in the Asia-Pacific region, where demand for digital infrastructure continues to rise sharply.

Blackstone’s acquisition of AirTrunk for A$24 billion underscores the firm’s commitment to expanding its digital infrastructure investments and highlights the growing importance of data centers in a digitally-driven global economy. As digital transformation accelerates, the demand for robust, scalable data infrastructure is set to soar, and Blackstone’s strategic acquisition positions it well to capture significant growth in this vital sector.