Oracle · Wall Street · U.S. · New York · CNBC Technology
Wall Street is pitching data centers as a major real estate bet. The risks are piling up
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Data centers have divided America.
Key facts
- The company says it owns over 130 data centers in 32 global markets representing over $18 billion in assets
- We are big believers in the space," Datz said, adding that the data centers held out for investors are usually vetted and underwritten by $3 to $5 billion in insurance
- Traders on the Kalshi prediction markets platform are increasingly bullish on the AI buildout continuing across the U.S. despite the risks, seeing a 75% likelihood that there will be more than 5,100
- The company sold 87.5 million shares at $20 apiece in its mid-May debut
Summary
For the most part, the funds from alternative investment companies promising investors a piece of the physical infrastructure powering the AI economy remain the province of institutional investors like pension funds. "We saw this as an opportunity to capture the whole market of stabilized data centers and build a home in the public market where we think it belongs," CEO Nick Pell said in a CNBC "Squawk on the Street" interview in May. While many new data center projects across the U.S. remain subject to shifts in public and political opinion, and various moratoriums including in the states of New York and Texas, the Blackstone REIT is primarily focusing on data centers in already mature markets such as Northern Virginia and Dallas, where sprawling data centers have had a significant presence that predates the AI boom.