qts realty trust, inc.

overview

QTS Realty Trust is North America’s largest independent data center operator with over 9 million square feet of data center space across more than 30+ facilities. Founded in 2003 by Chad Williams in Overland Park, Kansas, QTS pioneered the hyperscale data center model and became a publicly-traded REIT before being acquired by Blackstone in 2021 for $10 billion. Under Blackstone ownership, QTS has grown capacity 9x (900$1 billion to over $25 billion, cementing its position as the industry's largest and fastest-growing platform. QTS operates 24 projects in the database with$67.2 billion in associated investments and over 5,800 MW of total capacity.

business model

Wholesale hyperscale data center operator providing custom data center solutions to hyperscale cloud providers, large enterprises, AI companies, and government entities. QTS’s business model combines: (1) Hyperscale wholesale colocation with custom build-to-suit campuses for major cloud providers, (2) Hybrid colocation for enterprise customers requiring both retail and wholesale capacity, (3) Proprietary QTS Freedom Design building system enabling rapid deployment with water-free cooling, (4) Vertically integrated approach under Blackstone ownership combining data center operations with dedicated power generation (Pennsylvania PPL joint venture), (5) Software-defined interconnection platform (QTS Switchboard) for network connectivity. Revenue model is primarily long-term lease agreements (10-15 years) with hyperscale customers, supplemented by shorter-term enterprise colocation contracts.

data center profile

global footprint

us portfolio (from database)

projects by state

specialization

primary focus: hyperscale, wholesale, ai-ml, cloud

key differentiators:

• Largest independent data center operator in North America (9M+ sq ft, 30+ facilities)

• Highest project count in industry database (24 projects, $125B+ associated investment)

• QTS Freedom Design: Proprietary water-free cooling system saving 1.5B gallons annually

• 900% capacity growth under Blackstone ownership (2021-2025)

• Vertically integrated power strategy: PPL joint venture for dedicated gas generation in Pennsylvania

financial highlights

strategy

corporate strategy

Under Blackstone ownership, QTS has transformed from the fifth-largest data center REIT into North America’s largest independent data center operator through aggressive capacity expansion (9x growth 2021-2025) and strategic mega-project development. The company’s strategy focuses on: (1) Hyperscale wholesale dominance - Building custom mega-campuses for cloud providers and AI companies, (2) Vertical integration with power - Pennsylvania $25B project demonstrates co-location of data centers with dedicated generation, (3) Sustainability leadership - Water-free cooling as competitive differentiator and regulatory risk mitigation, (4) Speed to market - Standardized QTS Freedom Design enables rapid deployment for time-sensitive customers, (5) Strategic geography - Expansion into power-abundant markets (Pennsylvania, Ohio, Iowa, Wisconsin) while maintaining leadership in traditional hubs (Virginia, Arizona, Texas). QTS operates as Blackstone’s primary North American data center platform, complementing AirTrunk (Asia Pacific) and Lumina CloudInfra (India/Europe).

growth strategy

QTS’s growth strategy under Blackstone has been transformational, expanding from $1B to$25B+ development pipeline in four years. Key growth vectors include: (1) Mega-campus development - Pennsylvania $25B project represents new scale of integrated data center + power infrastructure, (2) Existing campus expansion - Virginia, Texas, Arizona, Ohio facilities all seeing major capacity additions, (3) New market entry - Strategic expansion into Midwest/Rust Belt markets with power abundance (Iowa, Wisconsin, Ohio, Pennsylvania), (4) Customer concentration - Deepening relationships with hyperscale customers through multi-site, long-term lease agreements, (5) Technology differentiation - Water-free cooling as primary differentiator enabling projects in water-constrained or regulated markets, (6) Power infrastructure control - Moving beyond traditional PPA model to direct ownership through PPL joint venture, (7) M&A potential - Blackstone’s capital enables opportunistic acquisitions of distressed or subscale operators. Growth is capital-intensive but supported by Blackstone’s perpetual capital structure (BREIT + Infrastructure Partners) eliminating traditional private equity exit pressure.

power strategy

QTS pioneered a vertically integrated power strategy that addresses the industry’s primary constraint: power availability. Under Blackstone ownership, this has evolved into direct ownership of generation assets. The Pennsylvania PPL joint venture (51% PPL, 49% Blackstone Infrastructure) represents the most advanced execution of this strategy: co-locating data centers with dedicated natural gas combined-cycle generation stations under long-term energy services agreements. This model bypasses traditional grid interconnection queues (7-10 year waits) and utility capacity constraints by controlling the entire value chain from fuel source (Marcellus/Utica shale gas) through generation to end consumption. QTS facilities utilize behind-the-meter or dedicated transmission connections rather than relying on constrained grid capacity.

renewable commitment: QTS is committed to renewable energy and sustainability while maintaining fuel-agnostic pragmatism. The company’s water-free cooling technology (saving 1.5B gallons annually) demonstrates environmental leadership beyond just power sourcing. For renewable energy specifically: (1) Blackstone’s $4.1B investment in Invenergy (largest US independent renewables developer) provides QTS access to renewable capacity, (2) Pennsylvania strategy includes potential for renewable integration as gas generation transitions, (3) Customer-driven renewable PPAs available where demanded by hyperscale tenants, (4) Focus on energy efficiency (WUE 1.12, 15% YoY improvement) reduces total energy demand regardless of source. However, Pennsylvania strategy’s reliance on natural gas generation reflects pragmatic recognition that baseload reliability is essential for 24/7 data center operations and renewable intermittency remains a constraint.

major commitments

partnerships

power providers

technology partners

QTS Freedom Design (proprietary) (Cooling Technology) : Proprietary water-free cooling system using low-pressure pumped refrigerant. Eliminates water consumption (0.0 WUE for new facilities). Standardized design enables 6-24 month faster deployment. Saved 1.5 billion gallons of water across QTS portfolio in 2024. Each facility saves 48+ million gallons annually. Integrated with modular power and infrastructure design.

Vertiv (Power and Cooling Infrastructure) : Leading provider of critical infrastructure technology for QTS facilities including UPS systems, power distribution, and thermal management solutions.

Schneider Electric (Power Distribution and Building Management) : Provides power distribution equipment, building management systems (BMS), and energy management solutions for QTS facilities.

Multiple fiber providers (Network Connectivity) : QTS facilities are carrier-neutral with multiple fiber providers. QTS Switchboard software-defined interconnection platform enables customers to connect to AWS, Microsoft Azure, Google Cloud, IBM Cloud, Oracle Cloud, and Salesforce. Network-dense with meet-me rooms and internet exchange access.

Shermco Industries (Blackstone portfolio company) (Electrical Services) : Blackstone’s $1.6B acquisition of Shermco provides mission-critical electrical services for QTS facilities from grid-level power to facility operations. Enables vertical integration of electrical infrastructure across QTS portfolio.

financial partnerships

leadership

David Robey

Co-Chief Executive Officer

Promoted from Chief Operating Officer to Co-CEO upon Chad Williams’ departure in April 2025. As COO, oversaw QTS operations during period of massive growth under Blackstone ownership (9x capacity increase 2021-2025). Responsible for executing Pennsylvania $25B mega-campus expansion and ongoing operational excellence. Deep operational expertise in data center construction, commissioning, and facility management.

Leads day-to-day operations of North America’s largest independent data center operator. Key executor of Blackstone’s aggressive expansion strategy. Critical role in Pennsylvania project execution and operational scaling.

Tag Greason

Co-Chief Executive Officer

Promoted from Chief Growth Officer to Co-CEO upon Chad Williams’ departure in April 2025. Previously led growth strategy during QTS’s expansion from 5th largest to largest independent data center operator in North America. Responsible for customer acquisition, market expansion, and strategic partnerships. Deep relationships with hyperscale cloud providers and enterprise customers.

Co-leads QTS with focus on growth strategy and customer relationships. Key role in securing hyperscale customers, expanding capacity commitments, and executing $25B+ Pennsylvania mega-project. Critical to maintaining 900% growth trajectory under Blackstone ownership.

Chad Williams

Founder and Former CEO (departed April 2025)

Founded QTS in 2003 with purchase of former Sprint data center in Kansas City. Built QTS from startup into $60 billion global industry leader over 22+ year career. Led company through IPO in 2013 (NYSE: QTS) and eight years as public REIT. Partnered with Blackstone on 2021 take-private transaction and oversaw 5x increase in contracted revenue and transformation into North America's largest independent data center operator. Stepped down April 18, 2025, returning to position as CEO of Quality Group of Companies (QGC), a diversified real estate and business services family office. Called 'a generational entrepreneur' by Stephen Schwarzman and 'true pioneer in the data center space' by Jonathan Gray. Under his leadership and Blackstone ownership, QTS's development pipeline grew from$1B to $25B and commissioned power capacity expanded to over 3 GW.

Built QTS from scratch into North America’s largest independent data center operator. Founding visionary who pioneered hyperscale data center model. Under his leadership with Blackstone backing, QTS achieved unprecedented 900% capacity growth. Departure marks end of founding era but company positioned for continued growth under co-CEO structure with Blackstone strategic oversight.

competitive position

QTS is North America’s largest independent data center operator with 9M+ square feet across 30+ facilities and over 5,800 MW of total capacity. Following Blackstone’s 2021 acquisition, QTS has grown capacity 9x (900%) and expanded development pipeline from $1B to$25B+, cementing leadership position in hyperscale wholesale market. QTS operates 24 projects in the industry database - the highest count of any operator - with $125B+ in associated investments. The company’s scale, financial backing, proprietary technology (water-free cooling), and vertically integrated power strategy (Pennsylvania PPL JV) create significant competitive moats. QTS competes directly with Digital Realty, Equinix, CyrusOne/KKR, and other large-scale operators, but differentiates through Blackstone’s capital, sustainability leadership, and speed to market.

strengths

• Largest independent data center operator in North America (9M+ sq ft, 30+ facilities, 5,800+ MW)

• Highest project count in industry database (24 projects, $125B+ associated investment)

• Blackstone backing: $1.2T AUM parent provides unmatched capital for growth

• 900% capacity growth under Blackstone ownership (2021-2025) demonstrates execution excellence

• Proprietary QTS Freedom Design: Water-free cooling saves 1.5B gallons annually, enables projects in water-constrained markets

opportunities

• Massive AI/ML infrastructure demand: Hyperscale customers (AWS, Azure, Google Cloud) expanding capacity for AI workloads

• Power infrastructure advantage: PPL JV model replicable in other markets facing grid constraints

• Pennsylvania execution: Successful $25B project delivery would cement industry leadership and provide template for future mega-projects

• Midwest expansion: Power-abundant markets (Iowa, Wisconsin, Ohio) offer favorable economics and less competition

• Sustainability premium: Water-free cooling differentiator as ESG requirements tighten and water scarcity increases

threats

• Hyperscaler build-own-operate trend: AWS, Microsoft, Google, Meta increasingly building proprietary data centers, reducing third-party demand

• Aggressive competition: Digital Realty, Equinix, CyrusOne/KKR, Vantage all expanding capacity with strong financial backing

• KKR’s $50B Energy Capital Partners partnership: Largest competitive threat with integrated power + data center strategy

• Power availability constraints: Even with PPL JV, broader grid capacity limitations could constrain Pennsylvania and other markets

• Regulatory opposition: Natural gas generation strategy faces environmental activism and potential policy restrictions

projects

sources

• QTS Data Centers - Official Website

• QTS Realty Trust (2025)

• About QTS Data Centers

• QTS Realty Trust (2025)

• Pennsylvania Data Center Campus | QTS Data Centers

• QTS Realty Trust (2025)

• Pioneering Water Efficiency and Sustainability in Data Center Operations

• QTS Realty Trust (2024)

• QTS CEO Chad Williams to Step Down after Founding and Leading QTS over 20+ Year Career

• QTS Realty Trust (2025-03-25)

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

• Blackstone (2021-06-07)

• Blackstone Funds Complete Acquisition of QTS Realty Trust

• Blackstone (2021-08-30)

• 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 to build natural gas generation in Pennsylvania

• PPL Corporation (2025-07-15)

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

• Blackstone (2024-09-05)