Blackstone, a leading global alternative asset manager, has announced plans to acquire Australian data center group AirTrunk for an enterprise value exceeding A$24 billion ($16.1 billion), Reuters reports.
The deal, which marks Blackstone’s largest investment in the Asia Pacific region, also represents the biggest buyout in Australia this year and one of the most significant in recent history.
The acquisition involves Blackstone partnering with the Canada Pension Plan Investment Board (CPP Investments) to purchase AirTrunk from Macquarie Asset Management (MAM) and the Public Sector Pension Investment Board (PSP). The transaction is pending approval from the Australian Foreign Investment Review Board (FIRB), as the assets are being acquired by international entities.
AirTrunk, founded in Sydney in 2015, has rapidly grown to become the largest data center group in the Asia Pacific region, with 11 sites across Australia, Japan, Malaysia, Hong Kong, and Singapore. The increasing demand for digital infrastructure, particularly driven by the adoption of artificial intelligence (AI), has significantly boosted AirTrunk’s value during the sales process, which began in March.
CPP Investments, which will hold a 12% stake in AirTrunk upon the deal’s completion, has been a long-term investor in the Asia Pacific data center sector. Max Biagosch, CPP Investments’ global head of real assets, highlighted the significant growth in the space, driven by strong demand for digital infrastructure and the expanding role of AI.
AirTrunk’s founder and CEO, Robin Khuda, will retain a stake in the company and continue to serve as its chief executive. The exact size of his remaining shareholding has not been disclosed.
Blackstone’s president, Jon Gray, emphasized that the acquisition of AirTrunk is a strategic move in the firm’s broader goal to lead in digital infrastructure investment globally. The deal positions Blackstone to expand its portfolio across the digital ecosystem, including data centers, power, and related services.
The Blackstone-led group secured the deal after outbidding a consortium led by IFM Investors. The acquisition underscores the growing interest among global private equity investors and asset managers in data centers across the Asia Pacific region, particularly as the AI boom drives demand for increased data capacity.
