Blackstone announced on Wednesday that it will acquire Australian data centre company AirTrunk for a total enterprise value exceeding A$24 billion ($16.10 billion), marking the firm's most significant investment in the Asia Pacific region to date. The acquisition, involving Blackstone and the Canada Pension Plan Investment Board (CPP Investments), is set to take over AirTrunk from Macquarie Asset Management (MAM) and the Public Sector Pension Investment Board (PSP). This deal, pending approval from the Australian Foreign Investment Review Board (FIRB) due to the involvement of foreign entities, stands as the largest buyout in Australia in the current year and ranks among the largest in recent times.
The global private equity and asset management sectors are poised for substantial mergers and acquisitions and investments in data centres across the Asia Pacific, driven by the surge in artificial intelligence (AI) and the consequent escalating demand for digital infrastructure. The value of AirTrunk has risen during the sales process, which commenced in March, reflecting the growing need for increased data centre capacity due to AI applications. CPP Investments disclosed on Wednesday that it will hold a 12% stake in AirTrunk post-transaction completion.
Max Biagosch, CPP Investments' global head of real assets, highlighted the firm's long-term investment in the Asia Pacific data centre sector, noting significant growth fueled by robust demand for digital infrastructure and, more recently, the expanding use of artificial intelligence. AirTrunk, established in Sydney in 2015, is recognized as the premier data centre group in the Asia Pacific, operating 11 facilities across Australia, Japan, Malaysia, Hong Kong, and Singapore. MAM and Canada's PSP, who previously held an 88% stake, have divested their entire shareholding, according to a joint statement. AirTrunk founder and CEO Robin Khuda will continue to hold a stake, though the exact size was not specified, and he will remain in his executive role.
Blackstone president Jon Gray emphasized the strategic importance of AirTrunk in Blackstone's ambition to lead in global digital infrastructure investment, encompassing data centres, power, and related services. Blackstone and CPP Investments emerged victorious over a consortium led by IFM Investors, which also vied for AirTrunk, as reported by Reuters on August 28. Reuters further reported on September 4 that the Blackstone-led group was close to finalizing a deal to secure control of AirTrunk.
