U.S. investment management firm Blackstone (BX) is buying privately held Australian data centre group AirTrunk for $16 billion U.S.
The acquisition is Blackstone's largest investment ever in the Asia-Pacific region.
The Canada Pension Plan Investment Board (CPP Investments) is partnering with Blackstone on the purchase of AirTrunk, which is being acquired from Macquarie Asset Management (MAM) and Canada’s Public Sector Pension Investment Board (PSP).
The transaction needs approval from Australian market regulators but is expected to proceed and conclude sometime in 2025.
The Canada Pension Plan Investment Board said in a statement that it will own 12% of AirTrunk once the deal is concluded.
Market analysts expect a wave of merger and acquisitions linked to data centres in the Asia-Pacific region in coming months amid an ongoing boom in artificial intelligence (A.I.) that is driving demand for digital infrastructure.
AirTrunk, which was founded in Sydney, Australia in 2015, is the largest data centre group in Asia-Pacific with 11 sites spread across five countries in the region.
The company was previously owned 88% by Macquarie Asset Management (MAM) and Canada’s PSP, which have now sold their entire stake in AirTrunk.
Blackstone’s stock has risen 28% over the last 12 months and currently trades at $138.14 U.S. per share.
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