Blackstone is to invest over $25bn (€21.5bn) in real assets in Pennsylvania as it targets natural gas power generation and data centre assets in the US state.
Funds managed by Blackstone’s infrastructure and real estate businesses will invest to support the build-out of Pennsylvania’s digital and energy infrastructure, an investment it expects to “catalyse” an additional $60bn into the Commonwealth.
As part of the investment plan, Blackstone-backed data centre operator QTS has secured multiple land sites in Northeastern Pennsylvania to develop and operate data centres. QTS also intends to issue a request for information, inviting other communities to participate in the development of additional data centres.
Blackstone has also formed a joint venture with local utility PPL to invest in new natural gas power generation facilities within Pennsylvania, to serve the power needs of data centres through long-term energy supply agreements.
Construction for the facilities is expected to begin by the end of 2028, subject to obtaining the necessary permits and utility approvals.
Jon Gray, Blackstone’s president and COO, said: “We’re thrilled to be investing behind two of our highest conviction themes – digital infrastructure and energy – in a part of the country that is ideally situated to support and expand America’s leading position in the AI revolution.
“We look forward to working with our partners in government, local communities and with the people of Pennsylvania to meaningfully invest in the growth of the commonwealth’s digital and energy infrastructure.”
Sean Klimczak, Blackstone’s global head of infrastructure, said: “Pennsylvania is transforming into a strategic hub for AI innovation, and we’re excited to work with our partners at PPL to invest in the generation needed to support this critical digital infrastructure.”
Nadeem Meghji, Blackstone’s global co-head of real estate, said: “This announcement is reflective of Blackstone’s track record of partnering with governments, local communities and customers to create win-win-win outcomes. As the leading global investor in data centers, we are excited to help advance the nation’s digital infrastructure goals.”
Tag Greason, co-CEO of QTS, said: “Pennsylvania is well positioned for data-centre growth and has become a market where we’re seeing substantial demand from hyperscalers and other customers for high-quality digital infrastructure.
“We look forward to engaging with communities and leaders across the Commonwealth to position our leading data center platform to support the digital infrastructure needs of Pennsylvania businesses and families.”
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