Data-center developers seek $25 billion in stake sales this summer

US data-center builders and operators are working with bankers to sell majority equity stakes worth tens of billions of dollars this summer, capitalizing on surging demand for AI computing infrastructure.

"There are not that many people who can write those checks," Ravi Purohit, co-head of infrastructure at Paul Weiss, said.

Among the largest potential deals, Dallas-based DataBank could fetch as much as $25 billion in a majority stake sale, according to people familiar with the process. EdgeCore Digital Infrastructure, a Denver-based operator backed by Swiss investment firm Partners Group, asked potential buyers to submit offers last week. KKR's newly formed Helix Digital Infrastructure is among those evaluating assets, a person with direct knowledge said. Other firms working with bankers include Netrality Data Centers and Edged, with properties spanning from Phoenix to Atlanta.

The wave of stake sales comes as data-center M&A hit about $50 billion in 2025, more than double the prior year, according to S&P Global Market Intelligence. Whether enough buyers exist to absorb multiple multibillion-dollar deals simultaneously remains an open question.

Rising costs drive consolidation

Shortages of electricians, plumbers, gas turbines and memory chips have driven construction costs higher. Nvidia Chief Executive Jensen Huang recently estimated that building a gigawatt of new computing power using his company's architecture could soon reach $80 billion to $100 billion. Some operators have been forced to seek deeper-pocketed backers to fund their next phase of expansion, according to several people working on the deals.

Private-equity firms have increasingly added data-center operators to their portfolios. Blackstone took a roughly 49 percent stake in Rowan Digital Infrastructure in April and bought QTS for about $10 billion in 2021. Last year, a consortium led by BlackRock's Global Infrastructure Partners and MGX agreed to buy Aligned Data Centers for about $40 billion, the largest data-center deal ever. That acquisition is expected to close in the coming weeks, surpassing Blackstone's roughly $16 billion purchase of AirTrunk in 2024.

NIMBY resistance adds risk

Developers are increasingly running into fierce local opposition driven by residents' anxieties over rising utility bills, noise and AI services in general. In some cases, it has pushed developers to pause or walk away from projects, making data-center investments riskier than in the past.

"The more they can demonstrate to buyers that they have a constructive relationship with these communities...that actually goes a long way," Purohit said, adding that companies looking to sell this summer will be scrutinized for how they plan to handle local opposition.

Guaranteed access to electrical power is a major factor in deal valuations, bankers and investors involved in the sales say. Concerns around rising costs and delays might also drive some buyers to tie payments to completion of milestones.

For investors, the wave of stake sales signals that data-center assets are entering a new phase of institutional ownership. Blackstone, BlackRock and KKR are placing large bets on AI infrastructure, while developers like DataBank and EdgeCore seek capital partners to fund expansions that no single firm can finance alone. The $25 billion DataBank deal, if completed, would serve as a benchmark for how the market values pure-play data-center operators in an era of $80 billion-plus build costs per gigawatt.

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