Blackstone’s flagship fund, the Blackstone Real Estate Income Trust (BREIT), has strategically pivoted its investment focus towards the data center sector in response to the burgeoning demand fueled by the widespread adoption of artificial intelligence (AI).
Recent months have seen BREIT divest assets and increase liquidity to facilitate its investments in data centers. Unlike its earlier acquisitions, which totaled approximately $60 billion from the beginning of 2021 through Q3 last year, BREIT has refrained from large purchases since last fall.
Among the notable asset sales was the $2 billion transaction involving Simply Self Storage, part of the overall $10 billion in asset divestments during this period.
The proceeds from these asset sales have been utilized to accommodate investor redemption requests, with over $8 billion worth of such requests already honored as of November. Furthermore, BREIT has been accumulating funds to develop properties capable of meeting the escalating computing demands associated with AI technology.
Blackstone has demonstrated its commitment to the data center sector, having already invested over $8 billion in constructing data centers for major technology companies. Additionally, the company has allocated more than $1 billion towards acquiring land for data centers in five states.
In June, Blackstone embarks into the Asian data center sector, beginning with India as it has an ever-growing demand for the data center sector
Recognizing the critical role of AI in driving data center growth, BREIT has projected its data center investments to yield substantial profits.
As the demand for data centers continues to soar, Blackstone Real Estate Income Trust remains at the forefront, poised to capitalize on the immense growth potential in the AI-driven era.