What’s happening:‍

• Blackstone in partnership with Canada Pension Plan Investment Board (CPP Investments) has signed an A$24 billion agreement to acquire AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board. AirTrunk is a leading data center company in the Asia Pacific region. 
• This is Blackstone's largest investment in the Asia Pacific region.

Why it matters: 

• The deal highlights Blackstone's focus on expanding its digital infrastructure portfolio amidst a rising demand due to technological advancements.
• AirTrunk is a leading data center developer and operator with a strong presence across several key markets. Blackstone's acquisition of AirTrunk positions it as a key player in technology in the Asia Pacific region.

By numbers:

• The acquisition is valued at A$24 billion, making it Blackstone's largest investment in the region.
• AirTrunk boasts over 800 megawatts of committed capacity and has substantial land for future growth exceeding 1 gigawatt.
• The global data center market is projected to see approximately $2 trillion in capital expenditures over the next five years.

The bigger picture:

• The Asia Pacific region is projected to be one of the fastest-growing data center markets globally. The acquisition allows Blackstone to access key markets in Australia, Japan, and Singapore, enhancing its portfolio.

The intrigue: 

• While Blackstone is solidifying its foothold in the data center market, it faces competition from established public companies. For example, Equinix (EQIX) and Digital Realty (DLR), two of the largest data center operators in the world, are actively expanding their footprint in the Asia-Pacific region. 
• This acquisition by Blackstone may drive them to increase their investments even further.