Private equity giant Blackstone Group, together with Canadian pension fund CPP Investments, is finalizing an A$5.5 billion (approximately $3.7 billion USD) loan package to fund their Blackstone AirTrunk acquisition — the largest data center deal ever recorded in Asia Pacific and the biggest M&A transaction in Australia for 2024.
The Loan Structure Behind the A$24 Billion Deal
The financing package comprises a A$2 billion term loan and a A$3.5 billion revolving credit facility. More than ten financial institutions are participating in the syndication, including Credit Agricole, Deutsche Bank, Morgan Stanley, and Japan's MUFG. The five-year facility covers approximately 45% of Blackstone's equity investment in AirTrunk, with the balance sourced from Blackstone's own capital reserves.
AirTrunk carries approximately A$4.6 billion in existing debt, which will be rolled over immediately after the acquisition closes. Representatives from Blackstone, CPP Investments, and the participating banks have declined to comment publicly, citing the confidential nature of the transaction.
Why AirTrunk Commands a 20x EBITDA Valuation
AirTrunk was founded by Bangladeshi-Australian entrepreneur Robin Khuda and has grown into Asia Pacific's largest hyperscale data center operator, with facilities across Australia, Japan, Malaysia, Hong Kong, and Singapore. The A$24 billion enterprise value implies a purchase price of over 20 times projected EBITDA — a multiple that would appear extreme in most sectors, yet banks remain confident given the structural tailwind from artificial intelligence infrastructure demand.
CPP Investments is acquiring a 12% stake in AirTrunk as part of the transaction, while Blackstone retains majority ownership. The sellers are Macquarie Asset Management and the Public Sector Pension Investment Board.
Asia Pacific's Largest Data Center Acquisition by the Numbers
The Blackstone AirTrunk loan ranks as the second-largest acquisition financing in the Asia Pacific region in 2024, according to Dealogic data. The overall transaction is the largest-ever data center deal globally, underscoring how quickly the sector has scaled as cloud providers and AI companies race to secure hyperscale capacity in high-growth Asian markets.
The deal reflects Blackstone's wider strategy to expand its digital infrastructure holdings across Asia, particularly in markets where AI-driven demand for compute capacity is accelerating well ahead of existing supply.
