Blackstone-backed QTS has launched a $4.6bn green bond offering, as the private equity firm accelerates investment in AI-driven digital infrastructure, according to Bloomberg sources.

The 10-year investment-grade bond will support the development of a large-scale data centre in Fayetteville, Georgia, underscoring Blackstone’s continued expansion in hyperscale infrastructure.

Initial price discussions indicate a spread of approximately 1.625 percentage points above US Treasuries, reflecting strong investor appetite for high-quality, AI-linked assets.

QTS, which Blackstone acquired for $10bn including debt in 2021, is building a facility designed to house thousands of servers for major technology clients, including Microsoft.

The bond has received a Baa2 rating from Moody’s, positioning it firmly within investment-grade territory. Proceeds will primarily be used to refinance existing credit facilities tied to the project, alongside other corporate purposes.

The transaction is being arranged by JPMorgan, Goldman Sachs, Wells Fargo, and SMBC Nikko, highlighting continued support from global banks for private equity-backed infrastructure financing.

The deal comes as AI-driven data centre expansion drives significant capital demand. Moody’s estimates that more than $3tn in financing will be required to support the build-out of digital infrastructure globally.

Debt markets are expected to play a central role in funding this expansion, with both public and private credit increasingly used alongside equity capital.

QTS has already tapped private placement markets, recently raising $800m from institutional investors, with further issuances expected as development progresses.

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