Blackstone to invest $25 billion in Pennsylvania data centers, power

Published 15/07/2025, 19:34
Blackstone to invest $25 billion in Pennsylvania data centers, power

NEW YORK - Blackstone (NYSE:BX), the $196.77 billion market cap investment giant with a robust financial health score of "GOOD" according to InvestingPro, announced Tuesday it will invest over $25 billion to develop Pennsylvania’s digital and energy infrastructure, aiming to attract an additional $60 billion in investments to the state. The company, which has demonstrated strong financial performance with 24.64% revenue growth over the last twelve months, appears slightly overvalued based on InvestingPro’s Fair Value analysis.

The investment will be made through funds managed by Blackstone Infrastructure and Blackstone Real Estate, focusing on data centers and power generation facilities across the Commonwealth. The firm’s solid track record of maintaining dividend payments for 19 consecutive years, with a current dividend yield of 2.28%, demonstrates its commitment to shareholder returns. [Discover more insights about Blackstone and 1,400+ other stocks with InvestingPro’s comprehensive research reports.]

QTS, a Blackstone-backed company described as the largest independent data center operator globally, has secured multiple sites in Northeastern Pennsylvania for development and plans to issue a Request for Information to invite other communities to participate in additional data center projects.

As part of the initiative, Blackstone has formed a joint venture with Pennsylvania-based utility company PPL to invest in new natural gas power generation facilities in the state.

The project is expected to create or support approximately 6,000 jobs annually during the estimated 10-year construction timeline, with an additional 3,000 permanent positions during operations at QTS facilities and through its customers, according to the press release.

"Pennsylvania is uniquely suited to serve as a strategic hub to power the nation’s AI objectives given its abundant low-cost energy that accounts for 20% of the nation’s natural gas production," the company stated.

Construction is expected to begin by the end of 2028, subject to permitting and utility approvals. The company plans to utilize Pennsylvania’s new "Fast Track" project management systems to expedite permitting requirements.

Jon Gray, Blackstone’s President and Chief Operating Officer, said the investment aligns with the firm’s focus on digital infrastructure and energy in a region positioned to support America’s AI development.

This announcement builds on Blackstone’s existing investments in data centers and power infrastructure, according to the press release.

In other recent news, Blackstone has announced a substantial $25 billion investment in Pennsylvania’s data centers and energy infrastructure, marking a significant expansion of its infrastructure portfolio in the state. This investment plan includes the construction of large data centers and a partnership with a local utility to build natural gas generation plants. Additionally, Blackstone is involved in a $20 billion private credit partnership with Legal & General Group, aiming to originate investment-grade private credit deals for the UK insurer’s annuities business. This collaboration is part of a broader trend of alternative asset managers forming strategic partnerships with insurance companies. Meanwhile, Blackstone’s improved takeover bid of approximately £489 million for Warehouse REIT has been recommended to the REIT’s shareholders, surpassing a competing offer from Tritax Big Box REIT. In another development, Jersey Mike’s plans to raise $400 million in asset-backed securities, which could help pay Blackstone, following its acquisition of a majority stake in the sandwich chain earlier this year. Lastly, Blackstone has appointed Monica Issar as the Senior Managing Director and Head of Total Portfolio Management, bringing her extensive experience from J.P. Morgan to the firm.

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