Blackstone and CPP Investments to Acquire AirTrunk for Over A$24 Billion in Landmark Deal
In a groundbreaking move, Blackstone and the Canada Pension Plan Investment Board (CPP Investments) have finalized an agreement to purchase AirTrunk, a major data center operator in the Asia Pacific region, for an estimated enterprise value exceeding A$24 billion. This acquisition represents Blackstone's largest investment in Asia Pacific thus far.
AirTrunk, known as the leading data center platform in Asia Pacific, currently has over 800MW of capacity dedicated to customers. Furthermore, the company possesses land that can accommodate the development of more than 1GW of future capacity across various regions, including Australia, Japan, Malaysia, Hong Kong, and Singapore.
Jon Gray, Blackstone's President and COO, emphasized the strategic significance of the acquisition in line with Blackstone's goal to become the premier digital infrastructure investor globally. This investment in AirTrunk is expected to enhance Blackstone's already substantial data center portfolio, which includes over US$55 billion in existing data centers and a pipeline of more than US$70 billion in potential developments.
The transaction is subject to approval from the Australian Foreign Investment Review Board and is a response to the growing demand for digital infrastructure driven by the AI revolution and the shift to a digital economy.
Robin Khuda, AirTrunk's Founder and CEO, expressed confidence in Blackstone and CPP Investments' ability to support AirTrunk's growth through their capital, expertise, and market network.
This investment in AirTrunk by Blackstone aligns with a broader trend, with an estimated US$1 trillion set to be spent in the U.S. over the next five years on new data centers, and a similar amount anticipated internationally.
In conclusion, Blackstone's acquisition of AirTrunk signifies a significant move in the digital infrastructure space, reflecting the company's commitment to strategic investments and growth opportunities in the Asia Pacific region. This development not only highlights Blackstone's expanding presence but also underscores the increasing importance of digital infrastructure investments in today's evolving economy. For investors, this news offers insights into the potential growth and market positioning of companies like Blackstone, providing valuable information for investment decisions and financial planning.