Blackstone Upbeat on Long-Term Outlook for U.S. Data Centers

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Investments in data centers account for the overwhelming majority of Blackstone's near-$150 billion in U.S. developments, with the remainder attributed to Power Industry projects that often support stronger generation capacity for these projects.

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Betting on Data

The Blackstone Group is heavily invested in the growth of artificial intelligence (AI) and the broader need for data center capacity, which is the cornerstone of its upbeat outlook for the coming year. Industrial Info Resources is tracking nearly $150 billion worth of active and proposed projects across the U.S. from Blackstone and its subsidiaries, more than 90% of which is attributed to data center developments.

Steve Schwarzman, the chief executive officer of Blackstone, pointed to strong earnings across the first three quarters of 2026, which he says points to an "outstanding" 2027. "Stepping back, the economy is strong today," he said in a quarterly earnings-related conference call on Thursday. "The key catalyst is the historic level of investment taking place to facilitate the development of AI, including data centers, chips, equipment, power generation, construction and engineering services, and many other related areas."

According to Industrial Info Resources data, nearly $10 billion of the total investment is attributed to the Project Hawkeye data center campus in Cedar Rapids, Iowa. Quality Technology Services (QTS), a portfolio company of Blackstone, is managing the seven-phase project, of which the first phase started construction in May 2025; each phase comprises a 1.19 million-square-foot building.

Siculus LLC, a subsidiary of Facebook parent Meta Platforms Incorporated, is contracted to be the primary user of six of the seven buildings. Industrial Info Resources offers more information on Project Hawkeye in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases, where subscribers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and a project report for the first phase.

For details on all seven phases of Project Hawkeye, subscribers can consult a full list of project reports.

In the earnings call, Schwarzman acknowledged the growing public resistance to data centers, as well as "an increased focus in the market on the sustainability and risks of AI-related investment." But he remained optimistic about the sector's long-term prospects.

"Demand for compute is accelerating, and we see no signs of that slowing down as AI use cases ramp for both businesses and consumers, and the world increasingly engages with the vast potential of this technology," Schwarzman said. "At the same time, there's a critical scarcity of supply that has only intensified. Seldom in my career have I seen such a supply-constrained market of this scale."

He added: "Current public attitudes towards data centers will likely only amplify this scarcity. Over time, as the public comes to understand the advancements that have occurred in data center operations and construction, including with respect to water usage and the funding for electricity, these attitudes should change."

By the Numbers

• Nearly $150 billion: Total investment in active and proposed projects across the U.S. from Blackstone and its subsidiaries
• More than 90%: Share of the total investment attributed to data center developments

Searching for More Capacity

Schwarzman said the growth of data centers across the U.S. is contributing to "accelerating demand for power, following decades of static demand," and said Blackstone is bolstering its investments in power generation, transmission and distribution (T&D), battery storage and related technology.

Last November, Blackstone announced its subsidiary, Blackstone Energy Transition Partners, would develop the natural gas-fired, combined-cycle (NGCC) Wolf Summit Energy Center in Clarksburg, West Virginia. Its 610 megawatts (MW) of output is contracted to the Old Dominion Electric Cooperative to serve both the regional power grid and AI data centers. Subscribers can learn more from a plant profile and a detailed project report.

Blackstone also sees value in battery energy-storage system (BESS) technology, for which it took a stake in Williams Companies' Power Innovation projects earlier this year. Williams Power LLC, formerly a subsidiary of Williams Companies, is developing a stand-alone BESS unit in Madison, Indiana, with substantial investment from Blackstone; energy from the 150-MW unit will go toward Duke Energy Indiana via a power purchase agreement (PPA).

Subscribers can learn more about the Madison BESS development from a plant profile and a detailed project report.

However, not all of the BESS projects currently held by Blackstone are staying in its portfolio for the longer term. Earlier this year, Brookfield Asset Management announced it would acquire Aypa Power, a developer of utility-scale energy storage projects, from Blackstone for an enterprise value of about $7 billion.

Aypa's projects include the San Gabriel Solar and BESS project in Irwindale, California, which comprises 100 MW of solar generation and 100 MW of storage capacity. Now in its engineering phase, the project is slated to begin construction in the first quarter of 2027. Subscribers can learn more from a plant profile and a detailed project report.

Blackstone's third-quarter revenues were reported to be $3.06 billion, a decrease of less than1% from the same period last year; net income was reported to be $662.37 million, a 6% increase.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects across the U.S. from Blackstone and its subsidiaries.

Key Takeaways

• Blackstone executives believe strong earnings across the first three quarters of 2026 point to an "outstanding" 2027.
• One Blackstone executive believes public attitudes towards data centers will change over time.
• The company also is bolstering its investments in battery energy-storage system (BESS) technology.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).