QTS Secures Record $3.46B Refinancing to Fuel AI Data Center Growth
QTS Data Centers, a subsidiary of Blackstone, is set to expand its network of computing facilities with a significant refinancing deal. The company is issuing a $3.46 billion commercial-mortgage-backed securities (C.M.B.S.) offering, the largest of its kind this year. This expansion aims to keep pace with the growing demand for artificial intelligence (A.I.) services.
The expansion will involve backing the bonds with 10 data centers spread across six markets. These include Atlanta, Dallas, and Norfolk, VA. The energy consumption of these data centers is substantial, equivalent to powering the city of Burlington, VT, for five years.
The refinancing deal, totaling $3.46 billion, is the largest C.M.B.S. offering of its type in 2023. QTS Data Centers, owned by Blackstone, is using this opportunity to expand its network of computing facilities. However, the timeline for the planned offer remains unclear.
QTS Data Centers' expansion, facilitated by the $3.46 billion refinancing deal, underscores the growing demand for A.I. services. The company's investment in new data centers, powered by significant energy consumption, reflects the increasing need for computational infrastructure to support this technological boom.
