Blue Owl’s Stack Infrastructure weighs Asia unit sale for over $30 billion

Blue Owl Capital’s Stack Infrastructure is exploring a sale of its Asian operations that could be valued at more than $30 billion, a landmark deal reflecting surging demand for digital infrastructure driven by artificial intelligence across the region.

The Denver-based company has been in discussions with potential advisers regarding a full or partial sale of the assets, according to a Bloomberg News report on Tuesday citing people familiar with the matter.

The considerations are still in a preliminary stage and no final decisions have been made. The assets in question include a network of data centers in key locations such as Japan, Australia, and Malaysia. Specifics on the portfolio's total power capacity in megawatts and current revenue were not disclosed in the report.

A transaction of this magnitude would represent one of the largest deals in the data center sector, underscoring the high valuations private equity and infrastructure funds are placing on these assets. The potential sale provides a clear indicator of the immense capital required to compete in the rapidly growing Asian data center market, where rivals like Digital Realty and Equinix are also expanding to meet hyperscaler demand.

The potential divestment comes as infrastructure-focused funds and industry players show strong interest in digital infrastructure. The global boom in AI has created an unprecedented need for data centers capable of handling complex computations, making these facilities a prized asset class for institutional investors seeking stable, long-term returns. Blue Owl, a prominent alternative asset manager, has been actively building Stack into a global data center platform.

Valuation Reflects Fierce Asia Competition

A sale at a $30 billion valuation would provide significant returns for Blue Owl and could reshape the competitive landscape in the Asia-Pacific region. The capital generated would allow Stack to reinvest in other areas or could pave the way for a larger competitor to absorb its Asian footprint. The high price tag signals the intense competition for data center assets in markets like Tokyo, which are experiencing critical shortages of available power and capacity.

For investors, this move highlights the "picks and shovels" play of the AI revolution, where the underlying infrastructure is as valuable as the software itself. While Blue Owl is a private company, a sale of this size could trigger a re-rating of publicly traded data center REITs and infrastructure firms with significant Asian exposure. The deal's progression will be closely watched as a barometer for investor appetite and the long-term valuation of digital infrastructure.

This article is for informational purposes only and does not constitute investment advice.