Blackstone's Gray says data centers still an attractive investment

By Isla Binnie

NEW ⁠YORK, Dec ⁠10 (Reuters) - ‍Blackstone, the world's largest alternative asset manager, still sees good opportunities to invest ‍in data centers despite a rush of ​investment into the hardware supporting the development of artificial ​intelligence, its president said on Wednesday.

Technology companies need vast computing capacity to develop AI, and financial investors are joining ​them in pouring money into the physical sites for processors and other hardware. Researchers at ​consulting firm McKinsey estimate the buildout could cost $6.7 trillion worldwide by ‌2030.

"Surprisingly, despite the capital that has moved there, because of the constraints of ​power it's still an attractive ⁠place to deploy capital," Blackstone president and Chief Operating Officer Jon Gray ‌said at a Goldman Sachs Financial Services Conference in New York.

Blackstone paid about $10 billion to take data ‌center operator QTS private in 2021. Gray said its lease ‌capacity had grown by 12 times since then.

He also addressed concerns about the long-term prospects for those investments, ‍saying Blackstone would not invest until contracts were signed to use a ⁠site.

"You don’t put a shovel in the ground until you have a 15-plus-year lease with a very large market cap company," he said.

(Reporting by Isla BinnieEditing by Bill Berkrot)

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