Blackstone files for IPO of data center acquisition company

According to the filing submitted to the U.S. Securities and Exchange Commission on Friday, this new investment vehicle named Blackstone Digital Infrastructure Trust Inc. will focus on investments in newly built data centers, with individual project valuations ranging from $250 million to $1.5 billion, and have already been leased to investment-grade, hyperscale cloud service providers. The filing shows that these assets are expected to yield an annualized return of 5.75% to 7% or higher, with rents set to automatically increase by 2% to 3% annually. This move reflects two major plans of the alternative asset management company, which manages $1.3 trillion in assets: first, to become the world’s largest investor in artificial intelligence infrastructure, and second, to expand its investor base from pension and endowment funds to individual investors.