Blue Owl Capital Plans $6.5 Billion Data Center REIT Amid AI Boom

Blue Owl Capital Inc. is working to establish a publicly traded real estate investment trust (REIT) focused on data centers, planning to seed the vehicle with approximately $6.5 billion in existing assets, according to a report from Bloomberg News citing people familiar with the matter.

Details of the Plan

The alternative asset manager intends to take the REIT public through an initial public offering (IPO) and use proceeds from it and subsequent share sales to acquire additional data centers, the sources told Bloomberg. They noted that the plans are still under discussion and that the structure could change.

Blue Owl has a significant presence in digital infrastructure, having completed its latest fund dedicated to the sector in May with $7 billion in commitments. A representative for Blue Owl declined to comment on the matter, according to the report.

Market Context and AI Demand

The move comes as investor appetite for data center assets surges, fueled by the explosive growth of artificial intelligence, which requires immense computing power. Blue Owl's plan follows similar public offerings from other major investment firms looking to capitalize on this trend.

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Key recent listings in the sector include:

• Blackstone Digital Infrastructure Trust Inc., which raised $2 billion in its May debut as a "blind pool" REIT, allowing investors to buy shares before specific assets were acquired.
• Csquare Inc., a company backed by Brookfield, which raised $1.2 billion in its public listing in July.

A Hybrid REIT Model

According to Bloomberg's sources, Blue Owl's planned vehicle would operate similarly to Blackstone’s blind-pool REIT in its objective to grow its portfolio. However, it would differ by launching with a foundational portfolio of assets already in place.

This seeded approach provides initial visibility into the REIT's holdings, contrasting with a pure blind-pool structure. The success of Blackstone's offering has reportedly prompted other asset managers to explore similar vehicles to tap into the high demand for digital infrastructure investments.