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Blackstone-owned QTS Data Centers looks to raise $4.6bn, starting with 10-year investment-grade green bond sale. QTS has already held investor calls for the funding April 10, 2026 Blackstone-owned QTS Data Centers is looking to raise $4.6 billion to fund its AI data center build-out, beginning with the sale of a 10-year investment-grade green bond. Reporting by Bloomberg revealed that the company had held investor calls for the funding. Initial discussions put the bond at a yield of a comparable 10-year US Treasury bond, plus an additional 1.625 percentage points. The bond will be issued by two QTS subsidiaries associated with the construction of two data centers on a campus in Fayetteville, Georgia. Moody's Ratings gave the offering a first-time credit score of Baa2, meaning it is considered subject to moderate credit risk. A Baa2 rating is two notches higher than a "junk," non-investment grade rating. Moody's said, among other uses, proceeds would be used for refinancing credit facilities tied to the campus project. JPMorgan Chase, Wells Fargo, SMBC Nikko Securities, and Goldman Sachs are managing the sale. Founded in 2003, QTS was acquired by Blackstone for $10 billion in 2010. The company has multiple data center sites worldwide, either in operation or under construction, including in the US, UK, the Netherlands, and Spain. Blackstone, through QTS and other means, has been aggressively pursuing AI data center development in recent years, with concrete plans to become one of the biggest investors in AI infrastructure. Since the acquisition, QTS has seen its leased capacity grow by 14 times, with Blackstone's ownership of QTS now accounting for 20.4 percent of the real estate value of Blackstone Real Estate Income Trust. In February, QTS was reportedly seeking a more than $2 billion Commercial Mortgage-Backed Securities note to refinance an existing $1.36 billion debt associated with three data center campuses across Atlanta, Illinois, and Virginia. And just last month, reports emerged that Blackstone is pursuing plans to launch a publicly traded AI data center acquisition company, with potential investment from sovereign wealth funds. The company will invest in pre-built and leased data center assets. Some estimates put the required investment for the projected AI buildout at more than $3 trillion, and investment firms and asset managers worldwide are working on considerable investments to achieve this. However, persistent fears of data center overbuild and weak returns on AI investments have led to discussion around investor risk. While hyperscalers view AI underinvestment as an existential threat, prompting massive capital expenditure and the promise of huge returns, the large upfront capital investment required to meet demand is putting pressure on credit metrics. Moody's warned that, given upfront investment requirements for AI data centers, it could be between 12 and 24 months between initial spending and revenue generation, and higher capital intensity and debt levels could lead to a "reassessment of creditworthiness" if profit growth fails to materialize. More in investment / M&A / financing.

QTS, a US data centre operator owned by Blackstone, has raised $4.6 billion through investment-grade bond sales. The funds will refinance credit facilities for a Fayetteville, Georgia project designed to house thousands of servers for clients including Microsoft. Moody's assigned the debut public bonds a Baa2 rating. The notes were priced to yield 1.375 percentage points above US Treasuries.

Hyperscaler demand fuels Data Center CRE boom amid supply constraint. April 5, 2026 Majid Radaei, RadCRE Record hyperscaler demand reshapes Data Center landscape. The commercial real estate sector for data centers is experiencing an unprecedented surge, primarily fueled by the insatiable demand from hyperscale cloud providers and the burgeoning artificial intelligence (AI) industry. Recent reports from Cushman & Wakefield and CBRE indicate that the fourth quarter of 2025 saw record absorption rates, particularly in primary U.S. markets, signaling a transformative period for institutional investors. Market data reveals that net absorption in key North American markets, such as Northern Virginia, Atlanta, and Dallas-Fort Worth, collectively approached 1.3 gigawatts (GW) for the full year 2025. This figure represents a significant increase over previous years, highlighting the escalating need for scalable and robust digital infrastructure. Companies like Microsoft, Amazon Web Services (AWS), and Google Cloud are aggressively expanding their footprints, often pre-leasing massive blocks of capacity, sometimes years in advance, to support their global AI initiatives and cloud services. Investment inflows and supply chain pressures. This unprecedented demand has naturally attracted substantial capital. Investment giants such as Blackstone, via its QTS Data Centers platform, and Brookfield, through its Data Center platform, have been actively acquiring and developing new facilities. For instance, QTS Data Centers recently announced a significant expansion in Chicago, planning to invest over $1 billion in new capacity to meet future hyperscaler requirements. Similarly, DigitalBridge has continued its strategic acquisitions, aiming to bolster its portfolio of digital infrastructure assets across various global regions. However, the rapid pace of development is not without challenges. Supply chain bottlenecks, particularly for critical components like power transformers and switchgear, continue to extend lead times for new construction. Furthermore, the availability of land with sufficient power capacity in desired locations is becoming increasingly scarce, pushing up land prices and development costs. According to market intelligence from Green Street Advisors, development yields for new hyperscale-ready facilities have compressed slightly but remain attractive, generally in the 6-8% range, reflecting the low-risk demand profile once pre-commitments are secured. RadCRE perspective: navigating the digital frontier. "The data center sector is currently the clearest manifestation of the digital economy's impact on physical real estate," observes Majid Radaei, Founder of RAD Commercial Realty. "What we're seeing is not just cyclical demand but a structural shift driven by AI, IoT, and big data. While the cap rate compression has been significant for stabilized assets, particularly prime hyperscale-leased facilities, the real opportunity lies in understanding the nuanced risks of development and navigating the complexities of power procurement and interconnection. Our firm is actively advising clients looking to participate in this space, identifying strategic sites with adequate power infrastructure and connecting them with developers and capital providers who understand the long-term annuity-like returns this asset class can offer, even amidst rising construction costs. The scarcity of 'shovel-ready' sites with substantial MW capacity means early strategic planning and financial engineering are paramount." Market outlook and key considerations. Looking ahead, analysts predict sustained growth in this sector. CoStar anticipates double-digit annual growth rates for data center revenue through 2028. However, investors must increasingly focus on assets that meet stringent power efficiency standards and are located in areas with robust fiber connectivity and access to renewable energy sources, as sustainability becomes a core tenet for hyperscalers. The competitive landscape for capital is also sharpening, requiring sophisticated underwriting and a deep understanding of tenant credit and evolving technological demands for critical infrastructure. RadCRE assists clients in navigating the complex data center investment landscape, from identifying strategic land acquisitions with development potential to structuring financing for build-to-suit projects and facilitating investment sales of stabilized assets, leveraging its extensive network of institutional capital and industry expertise. Sources: Cushman & Wakefield, CBRE Research, Green Street Advisors, CoStar, QTS Data Centers announcements Evaluate your CRE Deal with AI. Get instant property valuations, sell-vs-refinance analysis, and market comps powered by its AI Deal Evaluation Platform - free for all asset classes.