Blackstone’s shift from lending to investing in AI data centers is facing scrutiny from public investors. The firm initially enjoyed high double-digit yields from lending to the sector but later decided to own stakes in these companies. However, as Shuli Ren noted in a Bloomberg Opinion column on October 13, 2026, Blackstone’s equity investments in AI data centers are now looking shaky. Public investors are no longer satisfied with growth alone and are demanding proof of profitability.
Blackstone’s exposure includes a 6.7% stake in Firmus, an AI infrastructure company, acquired after a $2 billion funding round in August 2026 that valued Firmus at over $10.5 billion. Before this, Blackstone had already provided a $10 billion debt facility for Firmus, transitioning from creditor to part-owner. The market’s reaction has been lukewarm, with Firmus delaying its planned Singapore REIT IPO, suggesting a lack of buyer interest at the desired price.
Blackstone’s own listed vehicle, BXDC public REIT, has also underperformed, debuting at $20 in mid-May 2026 and dropping roughly 16% by early October, trading below $17. The cash flow problem is evident in companies like CoreWeave, which struggles to achieve positive free cash flow despite robust EBITDA forecasts. The sector faces additional challenges, including power constraints, local opposition, and regulatory scrutiny.
Blackstone has made some successful exits, such as the sale of three Northern Virginia data centers to Digital Realty in June 2026 for $3.5 billion. The deal valued the assets at $7.8 billion on a gross basis, highlighting the contrast between mature, leased facilities and growth-stage operators like Firmus. The firm also retains indirect exposure through Digital Realty shares. Looking ahead, AirTrunk and Lambda, two other Blackstone-backed companies, are targeting public listings in 2027, which will be crucial indicators of market sentiment.