Asset AllocationSeptember 4, 2024

CPPIB, Blackstone Acquire Australian Data Center Operator

The duo will purchase AirTrunk from a consortium of investors.

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The Canada Pension Plan Investment Board and Blackstone Inc. announced on Wednesday that the duo has entered into an agreement to acquire AirTrunk, an Australian operator of data centers across the Asia-Pacific region. The CPPIB will commit to a 12% stake in the company in a transaction that values it at A$24 billion ($16.16 billion).

AirTrunk Operating Pty. Ltd. is a developer and operator of data centers. It manages 800mw of capacity across Australia, Singapore, Japan, Malaysia and Hong Kong.

The CPPIB and Blackstone will purchase AirTrunk from several existing investors, including Macquarie Asset Management and Canada’s PSP Investments. The CPPIB has joint ventures in data centers across the region, including in Hong Kong, Australia, Japan, Malaysia and Singapore.

“This investment represents another milestone in our broader data centre strategy, further enhancing our footprint in the region to the benefit of CPP contributors and beneficiaries. It is also a great example of close collaboration across the fund, with our Infrastructure and Real Estate teams working together seamlessly to underwrite this investment,” said Max Biagosch, global head of real assets at the CPPIB, in a statement.

The AirTrunk acquisition further bolsters Blackstone as one of the largest investors in data centers. Prior to its investment in AirTrunk, Blackstone held $55 billion of data center assets, with $70 billion in prospective pipeline development.

Blackstone invested in the deal across funds managed by Blackstone Real Estate Partners, Blackstone Infrastructure Partners, Blackstone Tactical Opportunities and the firm’s private equity platform for individual investors. Blackstone manages more than $1 trillion in assets, while the CPPIB manages C$648.8 million ($480.13 billion) for 22 million beneficiaries.

“AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power and related services,” said Jon Gray, Blackstone’s president and chief operating officer, in a statement.