Aligned Data Centers and Blackstone Credit & Insurance Announce Financing Relationship

Rhea-AI Summary

Blackstone Credit & Insurance (BXCI) and Aligned Data Centers announce a strategic partnership with a $600 million credit facility for a new data center in Utah. The partnership aims to support Aligned's growth and meet global customer demands.

Financial Analyst

The partnership between Blackstone Credit & Insurance and Aligned Data Centers, with the provision of a $600 million senior secured credit facility, represents a significant investment in digital infrastructure. This move underscores the growing importance of data centers in the tech industry, particularly for hyperscale and enterprise customers. The commitment of such a large credit facility by insurance accounts managed by BXCI's Infrastructure & Asset Based Credit Group indicates a strong confidence in Aligned's business model and growth prospects.

From a financial perspective, the infusion of capital is likely to accelerate the development of Aligned's new data center, potentially leading to an increase in their operational capacity and revenue generation. The focus on sustainability mentioned may also attract investors who are increasingly looking for environmentally responsible investment opportunities. However, it is crucial to monitor the terms of the credit facility, such as interest rates and covenants, as they could impact Aligned's financial health and flexibility.

Market Research Analyst

The partnership is indicative of a broader trend within the technology infrastructure industry, where demand for data centers is being driven by the proliferation of data, cloud computing and the need for robust IT infrastructure. Aligned's focus on sustainability aligns with market demands for greener solutions, potentially providing a competitive edge. The strategic location in West Jordan, Utah, within the Salt Lake City metro area, leverages the region's growing tech hub status and may offer advantages in terms of connectivity, power costs and tax incentives.

Long-term, this partnership could enhance Aligned's market position by increasing their capacity to serve the hyperscale market. It is important to analyze how this expansion might affect supply and demand dynamics in the data center market, as well as the competitive responses from other industry players.

Sustainability Analyst

The emphasis on sustainability in the development of Aligned's data centers is a response to the increasing scrutiny on the environmental impact of digital infrastructure. By focusing on adaptive and sustainable data center solutions, Aligned is likely to meet not only the current regulatory standards but also anticipate future environmental requirements. This approach may result in operational efficiencies and reduced energy costs, which can improve profit margins over time.

Investors and stakeholders should consider the potential reputational benefits and the alignment with global sustainability trends. However, it will be essential to evaluate the actual implementation of these sustainable practices and their effectiveness in reducing the carbon footprint of Aligned's operations.

NEW YORK & DALLAS--(BUSINESS WIRE)-- Blackstone Credit & Insurance (“BXCI”) and Aligned Data Centers, a leading technology infrastructure company offering innovative, sustainable, and adaptive Scale Data Centers and Build-to-Scale solutions for global hyperscale and enterprise customers, today announced a new strategic partnership. Blackstone has provided an initial $600 million senior secured credit facility to support the development of Aligned’s newest and largest data center in West Jordan, Utah. The senior secured credit facility is committed entirely by insurance accounts managed by BXCI’s Infrastructure & Asset Based Credit Group.

“Blackstone’s support contributes to Aligned’s continued growth in meeting the capacity demands of customers across the globe,” said Anubhav Raj, Chief Financial Officer at Aligned. “The capital demands of this industry make strong financial backing crucial. Strategic financing partnerships focused on ingenuity and collaboration are a key advantage. We are excited to embark on this initial transaction and build on future opportunities with Blackstone."

Robert Horn, Global Head of Infrastructure & Asset Based Credit at BXCI, said “We are thrilled to partner with Aligned and this partnership highlights our ability to support large scale digital infrastructure build-out with flexible and efficient financing solutions.”

Alan Carcich, Principal, Infrastructure & Asset Based Credit at BXCI, said “Aligned is one of the fastest growing data center platforms in the Americas and has a focus on sustainability – we look forward to working with the Aligned team to support their continued growth.”

Aligned’s SLC-03 data center is a two-story, 80 MW build-to suit project on its hyperscale campus in West Jordan, Utah, which now houses three facilities. This is the company’s fourth hyperscale data center in the Salt Lake City metro area.

About Aligned Data Centers
Aligned Data Centers is a leading technology infrastructure company offering innovative, sustainable, and adaptive Scale Data Centers and Build-to-Scale solutions for global hyperscale and enterprise customers. Our intelligent infrastructure allows densification and vertical growth within the same footprint, enabling customers to scale up without disruption, all while maintaining industry-leading Power Usage Effectiveness (PUE). By reducing the energy, water, and space needed to operate, our data center solutions, combined with our patented cooling technology, offer businesses a competitive advantage by improving sustainability, reliability, and their bottom line. For more information, visit www.aligneddc.com and connect with us on X, LinkedIn and Facebook.

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312926391/en/

Press and Analyst Inquiries

Jennifer Handshew for Aligned Data Centers

jennifer@180-mktg.com

+1 (917) 359-8838



Blackstone Contact

Kate Holderness

Kate.holderness@blackstone.com

+1 917 318 6818

Source: Blackstone

What is the partnership announcement between Blackstone Credit & Insurance (BXCI) and Aligned Data Centers about?

The partnership involves an initial $600 million senior secured credit facility provided by Blackstone to support the development of Aligned's newest and largest data center in West Jordan, Utah.

Who provided the senior secured credit facility for Aligned Data Centers?

The senior secured credit facility was committed entirely by insurance accounts managed by BXCI's Infrastructure & Asset Based Credit Group.

What is the focus of Aligned Data Centers in terms of growth and customer demands?

Aligned aims to meet the capacity demands of customers across the globe by focusing on sustainable and adaptive Scale Data Centers and Build-to-Scale solutions.

How does Blackstone plan to support large scale digital infrastructure build-out?

Blackstone aims to support large scale digital infrastructure build-out with flexible and efficient financing solutions through strategic partnerships like the one with Aligned.

Where is Aligned Data Centers' new data center located?

Aligned's new data center, SLC-03, is a two-story, 80 MW build-to-suit project on its hyperscale campus in West Jordan, Utah.