Key Takeaways
- • Blue Owl Capital is preparing a publicly traded data center REIT seeded with roughly $6.5 billion of its own data center assets, followed by an IPO and subsequent share sales to fund acquisitions and development, according to people familiar with the discussions.
- • The proposed vehicle would begin with a clearly defined portfolio, unlike Blackstone's Digital Infrastructure Trust, which launched in May as a blind pool raising $2.0 billion before disclosing target assets.
- • No IPO size, valuation, structure, or timeline has been determined; a Blue Owl representative declined to comment.
- • Global data center capital spending could rise from $421 billion last year to more than $1.2 trillion by 2028, per Bloomberg Intelligence estimates, driving operators and asset managers toward public markets.
- • OWL shares rose 0.93% to $11.95 in early trading following the report; Equinix and Digital Realty also advanced.
Summary
The proposed vehicle would differ from recent data center REIT debuts in one key respect: investors would know which properties they are acquiring from the outset. Blackstone's Digital Infrastructure Trust (BXDC) launched in May as a blind pool, raising $2.0 billion before disclosing its target assets. Csquare, backed by Brookfield (BN), raised about $1.2 billion in its July listing. A clearly defined portfolio could appeal to investors seeking immediate exposure to income-producing data centers rather than committing capital to a vehicle still assembling holdings.
Blue Owl is already deeply embedded in the sector. Its latest digital infrastructure fund closed in May with $7 billion in commitments, and its exposure includes Stack Infrastructure, which operates facilities across multiple regions. Stack is separately exploring options for its Asian operations, including a possible sale that could value those assets at more than $30 billion. The REIT would give Blue Owl a permanent platform to consolidate data center assets and raise capital over time, complementing its private funds and direct investments.
The push reflects the scale of AI-driven data center construction. Bloomberg Intelligence estimates global data center capital spending could climb from $421 billion last year to more than $1.2 trillion by 2028, pushing operators and managers toward IPOs, bonds, private credit, and REIT structures. Other asset managers are reportedly studying similar structures following the success of earlier listings.
OWL shares rose 0.93% to $11.95 in early trading Friday. Wall Street analysts maintain a Moderate Buy consensus, based on six Buy and five Hold ratings over the past three months, with an average price target of $12.68. Blue Owl declined to comment, and the people cautioned that final structure, IPO size, valuation, and listing timeline have not been determined.
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