Data Centers Drive $3.5B Blackstone CMBS Refinance Deal

Blackstone is expected to close a $3.46B single-borrower CMBS deal to refinance 10 data centers owned by its subsidiary, QTS.
The portfolio spans six US markets, including Atlanta, Dallas, and Norfolk, Virginia, and could reportedly power an entire city for five years.
The transaction highlights a broader trend of data center operators turning to securitized debt as institutional buyers remain scarce for fully leased, stabilized assets.

Key Takeaways

A Landmark Deal In A Booming Market

Blackstone is closing a $3.46B CMBS deal, marking 2025’s largest data center securitization, reports Bisnow. The deal, which involves stabilized assets, reflects the increasing use of structured finance in digital infrastructure investment strategies. It demonstrates growing investor confidence in data centers as long-term, income-generating real estate assets.

What We Know So Far

While specifics about the 10 assets remain undisclosed, reports suggest the portfolio’s energy usage could power Burlington, Vermont, for five years. These strategically located data centers support high-demand, hyperscale clients driving growth across the sector. They are expected to remain fully leased due to the surging demand for cloud and AI computing infrastructure.

QTS Expansion Fuels Blackstone’s Strategy

Since acquiring QTS for $10B in 2021, Blackstone has expanded its data center footprint more than eightfold. Today, QTS operates over 70 facilities totaling more than 3 gigawatts of capacity, making it a key hyperscale provider globally. The rapid expansion reflects Blackstone’s long-term conviction in the scalability of digital infrastructure assets.

This Isn’t Blackstone’s First Data Center CMBS

Earlier in 2025, QTS closed a $1.5B CMBS refinance on two fully leased facilities in Atlanta and Richmond. The assets, totaling 138 megawatts, were backed by long-term leases with major hyperscale tenants like cloud and AI providers. Both loans were structured to lock in low rates and boost cash flow from otherwise illiquid, stabilized assets.

Why This Matters

With institutional buyers cautious on large data center acquisitions, developers are increasingly tapping into CMBS markets to unlock capital. Fully leased facilities offer stable income but struggle to attract buyers due to high prices and modest yields. Securitization allows owners to extract value while retaining long-term control of mission-critical digital infrastructure.

Looking Ahead

Data center-backed securitizations have rapidly gained market share, now representing 13% of all SASB issuance, per Goldman Sachs. AI and cloud growth are fueling faster demand for capital-heavy infrastructure, with momentum expected to build through 2026. Expect more operators to follow Blackstone’s lead as traditional capital sources remain selective.