Blackstone data center REIT down 16% since May debut — CNBC
In the United States, shares of Blackstone Digital Infrastructure Trust (BXDC), a new real estate investment trust focused on data centers, have fallen by about 16% since their mid-May debut. Blackstone sold 87.5 million shares at $20 each, but on Thursday they closed below $17, CNBC reports.
BXDC trades on the New York Stock Exchange and is intended to give investors access to infrastructure for the development of artificial intelligence. Blackstone is focusing on data centers in established markets, including Northern Virginia and Dallas. The company estimates the market for such facilities at $300 billion, while the potential addressable market for its business exceeds $1 trillion over the next several years. At the same time, according to CNBC, BXDC has not yet deployed capital into investments.
Political and project risks
Investments in data centers are facing growing public and political resistance. According to a Gallup poll, 70% of Americans do not support the construction of a data center in their area. In July, New York became the first state to impose a moratorium on new approvals for hyperscale data centers, while in August Texas Governor Greg Abbott ordered new approvals to be halted.
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At the end of September, Oracle shares fell 4% after the company issued a force majeure notice regarding the Project Jupiter data center campus in New Mexico. The project is part of the broader Stargate AI initiative being developed by Blue Owl. Oracle is seeking to defer payments if the facility is not operational by 2028, citing regulatory obstacles and local opposition, although it says the project is on schedule.
Liquidity and dependence on major clients
Experts surveyed by CNBC cite high capital intensity, access to electricity, cooling systems, and network infrastructure among the key risks. The sector also depends on a limited group of major technology tenants and faces risks of construction delays, refinancing, technological obsolescence, and ongoing upgrade costs.
Retail participation in such investments is currently limited: about 94% of BXDC shares are owned by institutional investors. Specialists also warn that private digital infrastructure funds may have redemption restrictions, so access to a fund does not always mean being able to get money back quickly.
