Blackstone, a prominent alternative asset manager, has announced plans to acquire Australian data centre group AirTrunk for an enterprise value of over $16.10 billion. This marks the largest investment for Blackstone in the Asia Pacific region. The acquisition is being made in partnership with the Canada Pension Plan Investment Board (CPP Investments) and involves buying AirTrunk from Macquarie Asset Management (MAM) and the Public Sector Pension Investment Board (PSP). The transaction is subject to approval from the Australian Foreign Investment Review Board (FIRB) due to overseas party involvement.
This buyout deal is considered the largest in Australia this year and one of the biggest in recent history. Global private equity investors are showing a keen interest in data centres in the Asia Pacific region as the demand for digital infrastructure, driven by the artificial intelligence (AI) boom, continues to rise. AirTrunk’s value has increased significantly during the sales process, which began in March, due to the growing need for data centre capacity to support AI applications. CPP Investments has expressed its confidence in the sector’s growth potential and will hold a 12% stake in AirTrunk once the transaction is finalized.
AirTrunk, which was established in Sydney in 2015, is known as the largest data centre group in Asia Pacific, with operations in multiple countries including Australia, Japan, Malaysia, Hong Kong, and Singapore. The majority ownership of AirTrunk was held by MAM and Canada’s PSP, who have now sold their entire stake in the company. The founder and CEO of AirTrunk, Robin Khuda, will retain a stake in the company and continue to lead as the chief executive. This acquisition is part of Blackstone’s strategy to become a prominent investor in digital infrastructure globally, encompassing data centers, power, and related services.
Blackstone and CPP Investments emerged victorious in the bidding process for AirTrunk, beating out a consortium led by IFM Investors. The successful bid reflects the growing interest in data centres and digital infrastructure investments in the Asia Pacific region. With the increasing demand for digital services and AI-driven applications, companies like AirTrunk are poised to play a crucial role in supporting the technological advancements shaping various industries. This acquisition represents a strategic move for Blackstone as it seeks to strengthen its position as a leading investor in digital infrastructure globally.
As the digital economy continues to expand, the demand for robust data centre infrastructure is expected to grow exponentially. Companies that provide data centre services, such as AirTrunk, are well-positioned to capitalize on this trend and drive innovation in the sector. With supportive partners like Blackstone and CPP Investments, AirTrunk is poised for further growth and expansion in the competitive data centre market. The completion of this acquisition would mark a significant milestone for all parties involved and pave the way for future collaborations in the digital infrastructure space. This move underscores the increasing importance of data centres in enabling the digital transformation of businesses and industries worldwide.
