blackstone inc.

overview

Blackstone Inc. is the world’s largest alternative asset manager with over $1.2 trillion in assets under management. Founded in 1985 by Peter Peterson and Stephen Schwarzman, Blackstone has emerged as the largest private equity investor in data centers globally, with$80 billion in existing data center assets and over $100 billion in prospective pipeline development. The firm’s data center strategy spans direct ownership (QTS, AirTrunk), joint ventures (Digital Realty, COPT), power infrastructure (Invenergy, PPL), and supporting technologies (CoreWeave, DDN, Shermco).

business model

Alternative asset management across private equity, real estate, infrastructure, hedge fund solutions, and credit & insurance. Blackstone’s data center strategy employs a vertically integrated ‘picks and shovels’ approach, investing across the entire AI infrastructure stack from power generation to data center operations to specialized hardware and services.

data center profile

global footprint

us portfolio (from database)

projects by state

specialization

primary focus: hyperscale, ai-ml, wholesale

key differentiators:

• Largest private equity investor in data centers globally ($80B portfolio +$100B+ pipeline)

• Vertically integrated approach covering power, construction, operations, and technology

• Co-location strategy placing data centers directly next to power sources

• Scale to execute multi-billion dollar transactions (QTS $10B, AirTrunk$16B)

• Strategic focus on AI infrastructure as ‘megatrend of megatrends’

financial highlights

strategy

corporate strategy

Blackstone has publicly declared its intention to become the largest financial investor in AI infrastructure globally, viewing the projected $2 trillion in capital expenditures for data center development as an ‘unprecedented investment opportunity.’ CEO Stephen Schwarzman has described AI as the ‘megatrend of megatrends’ and compared its impact to the electric light bulb in 1880. The firm expects a 40% increase in electricity demand in the United States over the next decade, positioning data centers and power infrastructure as a generational investment opportunity.

growth strategy

Blackstone employs a vertically integrated ‘picks and shovels’ strategy, investing across the entire AI infrastructure value chain rather than direct AI technology. Key growth vectors include: (1) Scaling existing platforms - QTS has grown leased capacity 9x since acquisition, (2) Large-scale acquisitions - AirTrunk ($16B) and QTS ($10B) represent the two largest data center deals ever, (3) Joint ventures - Digital Realty ($7B), COPT (multiple partnerships), PPL (Pennsylvania gas generation), (4) Geographic expansion - North America (QTS), Asia Pacific (AirTrunk), Europe (Lumina CloudInfra), (5) Power infrastructure - Invenergy ($4.1B invested), PPL JV, Potomac Energy Center acquisition, (6) Supporting technologies - CoreWeave ($7.5B debt facility), DDN ($300M equity), Shermco ($1.6B acquisition). Blackstone has raised$70B in facilities with $100B+ in prospective pipeline.

power strategy

Vertically integrated approach combining power generation, transmission infrastructure, electrical services, and data center operations. Blackstone’s strategy addresses the critical constraint of power availability through co-location of generation assets with data centers, fast-track permitting, and ownership of electrical services capabilities.

renewable commitment: Blackstone made the largest recorded equity investment in North American renewables ($4.1 billion in Invenergy, the largest independent renewables developer in the US). However, strategy is fuel-agnostic and includes significant natural gas investments (Pennsylvania PPL JV, Potomac Energy Center) to ensure reliable baseload power for data centers.

major commitments

partnerships

power providers

technology partners

Shermco Industries (Electrical Services) : Acquired for $1.6B. Provides mission-critical electrical services for data centers from grid-level power to facility operations. Enables vertical integration of electrical infrastructure.

Power Grid Components, Inc. (Grid Infrastructure) : Acquired for $600M in December 2023. Provides electrical grid infrastructure components supporting power delivery to data centers.

DataDirect Networks (DDN) (AI/HPC Storage) : $300M investment at$5B valuation (early 2025). Global leader in AI and HPC data storage. Provides high-performance storage infrastructure for AI training and inference workloads.

CoreWeave (GPU Infrastructure) : Led $2.3B debt facility (August 2023) and$7.5B facility (May 2024) - one of largest private financings in history. CoreWeave builds and operates GPU infrastructure for large language model training. Valued at $19B in equity financing. Strategic investment in AI compute infrastructure.

Copeland (HVAC/Thermal Management) : Blackstone portfolio investment providing cooling and thermal management technology for data centers.

financial partnerships

leadership

Stephen A. Schwarzman

Chairman and CEO

Co-founded Blackstone in 1985 with Peter Peterson. Under his leadership, Blackstone grew from startup to world’s largest alternative asset manager ($1.2T+ AUM). Declared Blackstone’s intention to become largest financial investor in AI infrastructure globally. Compared AI’s impact to electric light bulb in 1880.

Primary architect of Blackstone’s data center strategy and AI infrastructure thesis. Publicly committed to positioning Blackstone as world’s largest AI infrastructure investor with $100B+ pipeline.

Jonathan Gray

President and Chief Operating Officer

Key spokesperson for Blackstone’s data center strategy. Announced Pennsylvania $25B investment in July 2025. Described digital infrastructure and energy as among Blackstone’s ‘highest conviction themes.’ Owns ‘the biggest data center company in the US and the biggest data center company in Asia, and the biggest powered land bank in Europe.’ Emphasized ‘special sauce’ of co-locating data centers directly next to power sources.

Primary operational leader for data center strategy. Key decision-maker on major acquisitions (QTS, AirTrunk) and strategic partnerships (PPL, Digital Realty). Regular spokesperson on AI infrastructure investment thesis.

Sean Klimczak

Global Head of Infrastructure and Chairperson of BXINFRA

Joined Blackstone in 2005. Helped establish Blackstone’s Energy Transition business in 2011 and founded Blackstone’s Infrastructure business in 2017. Involved in execution of many transactions across transportation, energy transition, and digital infrastructure sectors. Infrastructure platform has generated 15% net returns since inception approximately six years ago.

Founded Blackstone’s infrastructure business which now manages $44 billion and houses major data center investments. Key architect of infrastructure investment strategy and energy transition approach supporting data center growth.

competitive position

Blackstone is the largest private equity investor in data centers globally and the largest data center owner in the world with $80 billion in existing assets and over$100 billion in prospective pipeline development. In just three years (2021-2024), Blackstone scaled from relative newcomer to dominant global position through transformational acquisitions (QTS, AirTrunk), aggressive organic growth (QTS capacity 9x), and vertically integrated strategy spanning power, operations, and technology.

strengths

• Scale and capital: $1.2T AUM provides unmatched ability to execute multi-billion dollar transactions

• Largest data center portfolio globally ($80B existing,$100B+ pipeline)

• Vertically integrated approach controlling power, electrical services, operations, and technology

• Geographic diversification: #1 in North America (QTS), #1 in Asia Pacific (AirTrunk), growing European presence

• Track record of transformational acquisitions (QTS $10B, AirTrunk$16B - two largest DC deals ever)

opportunities

• Massive projected growth: $2T in US data center capex over next 5 years +$1T internationally

• 40% projected increase in US electricity demand over next decade

• Power infrastructure bottleneck creates moat for operators with co-located generation

• AI workload growth driving demand for hyperscale capacity

• Geographic expansion: Europe, India (Lumina CloudInfra 600 MW planned), additional Asia markets

threats

• Aggressive competition from KKR ($50B ECP partnership), DigitalBridge (specialized digital infra focus), Brookfield

• Hyperscalers building owned-and-operated capacity (bypassing third-party providers)

• Power availability constraints could limit growth regardless of capital

• Regulatory opposition to natural gas generation in Pennsylvania and elsewhere

• Environmental/permitting delays (Pennsylvania construction not starting until 2028)

projects

sources

• The Firm - Blackstone

• Blackstone (2025)

• QTS Realty Trust to Be Acquired by Blackstone Funds in $10 Billion Transaction

• Blackstone (2021-06-07)

• Blackstone closes $10bn acquisition of QTS

• Data Center Dynamics (2021-08-31)

• Blackstone Announces Agreement to Acquire AirTrunk in a A$24B Transaction

• Blackstone (2024-09-04)

• Completion Of AirTrunk Acquisition By Blackstone - Marking New Era Of Growth

• AirTrunk (2024-12)

• Blackstone to Invest More Than $25 Billion in Pennsylvania’s Digital and Energy Infrastructure

• Blackstone (2025-07-15)

• PPL Corporation and Blackstone Infrastructure create joint venture

• PPL Corporation (2025-07-15)

• Behind the Deal: AirTrunk, Data Centers and Blackstone’s Digital Infrastructure Strategy

• Blackstone (2024)

• The Convergence of Data Centers and Power: A Generational Investment Opportunity

• Blackstone (2024)

• Investing in AI

• Blackstone (2024)