US private equity giant Blackstone is in the final stages of negotiations to acquire Sydney-based data centre business Air Trunk, in a deal valued at approximately A$20 billion (US$13.5 billion). This acquisition, expected to be the largest in Australia this year, highlights the growing importance of digital infrastructure in the age of cloud computing and artificial intelligence.
Blackstone, partnering with the Canada Pension Plan Investment Board, is set to acquire AirTrunk from Macquarie’s asset management arm, outbidding a rival consortium that included private equity firm Silver Lake and asset manager Digital Bridge. The deal includes debt, reflecting the significant scale of the transaction.
Founded in 2016, Air Trunk has quickly expanded its operations across the Asia-Pacific region, establishing 11 data centres and becoming one of the fastest-growing technology companies in the area. The company, initially funded by overseas investors such as Goldman Sachs, had been considering a potential public listing before entering into sale discussions.
Air Trunk’s growth has been driven by the increasing demand for data storage and processing power, fueled by the rapid expansion of cloud computing and artificial intelligence. The company’s recent expansion into Japan, marked by the opening of a data centre near Tokyo, positions it well in a market that analysts predict will see significant growth as industrial groups digitize their operations.
Blackstone’s move to acquire AirTrunk aligns with its broader strategy of expanding its presence in the data centre sector, where it currently holds a $55 billion portfolio. As consolidation in the data centre market accelerates, this acquisition underscores Blackstone’s commitment to investing in critical digital infrastructure to support the future of technology.
Neither Blackstone nor Macquarie has commented on the deal, and AirTrunk has not responded to requests for comment.
