Blackstone’s AI data center bets face a tougher crowd: public investors

Blackstone spent years lending money to the AI data center boom at double-digit yields. Then it decided owning a piece of the action looked even better.

That second decision is now under the microscope. In a Bloomberg Opinion column dated October 13, 2026, Shuli Ren argued that Blackstone’s AI data center equity investments “are looking shaky.” Her reason is that public investors have stopped applauding growth alone and started asking when these companies will actually break even.

From lender to owner

The pivot matters because debt and equity carry very different risks. A lender gets paid interest whether or not the borrower becomes a hit. An equity holder only wins if the business eventually produces real cash for shareholders.

Blackstone’s exposure is not small. The firm owns 6.7% of Firmus, an AI infrastructure company. That stake came after Blackstone joined a $2 billion funding round in August 2026 that valued Firmus at more than $10.5 billion.

Before writing that equity check, Blackstone had already played a role in a $10 billion debt facility for the company. So the firm moved from creditor to part-owner of the same business.

The early signals from public markets have been chilly. Firmus delayed a planned Singapore REIT IPO, which had initially been pitched at a yield of about 6%. When a company postpones a listing, it usually suggests buyers were not ready to pay the hoped-for price.

Blackstone’s own listed vehicle tells a similar story. Its BXDC public REIT sold shares at $20 when it debuted in mid-May 2026. By early October, the stock was down roughly 16% and trading below $17.

The cash flow problem

CoreWeave has become the cautionary example. The company has struggled to reach positive free cash flow, even as its EBITDA forecasts look robust.

EBITDA is a profit measure that leaves out interest, taxes, depreciation and amortization. For a data center operator, depreciation on expensive chips and buildings is a very large cost. Strip it out and the business can look healthy on paper while still burning through cash.

The headwinds go beyond accounting. The sector is dealing with power constraints, local opposition to new facilities and regulatory scrutiny.

Cashing out where it can

Blackstone has not been sitting still. In June 2026, Digital Realty agreed to buy Blackstone’s blended 64% equity interest in three fully leased Northern Virginia data centers, with a combined 288 MW of capacity.

The price was $3.5 billion, split into $1.2 billion in cash and $2.3 billion in Digital Realty shares. The deal valued the assets at $7.8 billion on a gross basis.

That transaction shows the contrast in the market clearly. Mature, fully leased facilities in an established data center hub found a buyer at a substantial valuation. Younger, AI-focused platforms like Firmus are having a harder time convincing public investors.

A large chunk of the Digital Realty payment came in stock. That means Blackstone keeps indirect exposure to the sector through its new shares, just in a more established, publicly traded package.

The pipeline also still holds more candidates for public markets. AirTrunk and Lambda, two other Blackstone-backed companies, are targeting public listings in 2027.

What this means for investors

The main takeaway is that the AI infrastructure trade is splitting in two. Stabilized, leased assets with predictable income still command strong prices, as the Northern Virginia sale shows. Growth-stage operators with heavy spending and distant profits are being asked tougher questions.

For Blackstone, the timing is awkward. The firm swapped the steady income of double-digit debt yields for equity upside right as public markets grew more skeptical of that upside. Private valuations, like Firmus at above $10.5 billion, eventually need public buyers willing to agree.

That makes the 2027 listing plans for AirTrunk and Lambda important markers to watch. BXDC’s trading also serves as a real-time gauge. A REIT priced below its launch level suggests the market is applying a discount to Blackstone’s data center story.