The Blackstone investment group is in advanced talks to acquire AirTrunk, an Australian data center company, in a significant move to capitalize on the growth of cloud computing and artificial intelligence. Sources close to the negotiations indicate that Blackstone is collaborating with the Canada Pension Plan Investment Board, and the deal is expected to reach AU$20 billion (US$13.5 billion).
If completed, this would mark Australia's most significant corporate transaction this year. Other potential buyers, including Silver Lake and DigitalBridge, were also vying to acquire AirTrunk, highlighting the high level of interest in the data center market.
Founded in 2016, AirTrunk has rapidly expanded, operating 11 data centers across the Asia-Pacific region. The company had been considering a public offering before receiving these acquisition proposals. According to individuals familiar with the matter, the sale price is said to include debt.
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Blackstone has been aggressively expanding its presence in the data center space. In June, the firm’s CEO, Stephen Schwarzman, emphasized that Blackstone plans to invest billions in developing new facilities to meet the growing demand for cloud and AI infrastructure.
AirTrunk was founded by Robin Khuda, a Bangladeshi immigrant to Australia who remains the company’s CEO. Khuda initially secured international investors like Goldman Sachs to finance his vision of creating large-scale data centers to meet the rising demand for digital infrastructure across the region.
In 2020, Macquarie and PSP Investments acquired an 88% stake in AirTrunk, anticipating that artificial intelligence's growing influence would drive further demand for digital infrastructure investments. The acquisition valued AirTrunk at AU$3 billion at the time.
The data center sector has seen increased consolidation in recent years as global investors focus on long-term growth prospects fueled by AI and cloud technologies. The Financial Times reported that neither Blackstone nor Macquarie commented on the ongoing deal, while AirTrunk remained unavailable for comment.
