Blackstone’s QTS to Close $3.5B Data Center Refi
This marks the largest deal of its kind so far this year.
QTS Data Centers, which is wholly owned by Blackstone, will secure a $3.5 billion CMBS note to refinance 10 data centers across six markets, The New York Times first reported. The properties are spread across six markets, with Atlanta, Dallas and Norfolk, Va., among them.
Blackstone’s refinanced portfolio totals 214.9 megawatts across 3.2 million square feet, according to reports by Morningstar DBRS, and credit rating company Fitch.
Citi Real Estate Funding, Bank of America, Bank of Montreal, Barclays, BNP Paribas US Wholesale Holdings, Goldman Sachs, JP Morgan, Morgan Stanley, Natixis, Santander, Wells Fargo will originate and sell the debt. The loan features interest-only payments for the initial two-year period, with a floating rate of 6.25 percent. Three one-year note extensions are also possible.
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Once closed, this will be the largest debt placement of its kind so far this year. For reference, data center CMBS issuance clocked in at $5.7 billion during the first half of 2025, Goldman Sachs reported. ABS debt origination, however, was higher, landing at $6.6 billion during the same interval.
Blackstone looked to close both kinds of deals. In June, it set out to obtain a $1.5 billion CMBS loan to refinance two hyperscale properties in Atlanta and Sandston, Va., while just three months later, it began procedures to secure a $599.8 million ABS note for a Phoenix data center.
Single-asset, single-borrower deals are rapidly growing in popularity across the data center market. While the first such issuance closed in 2021, these sector arrangements accounted for 13 percent of the entire SASB market as of May, Goldman Sachs points out, citing Green Street.
Data centers’ capital demand is expected to go into the trillions
This growing appetite for data centers across capital markets is expected to reach staggering demand, which McKinsey estimates at $6.7 trillion worldwide by 2030. Just within the past three months, Google, Meta, Microsoft and Amazon spent some $112 billion on capital improvements across the sector, according to The New York Times.
Meta plans to build what might become the largest data center in the Western Hemisphere. The company selected its financing partners for a $29 billion deal to develop this Louisiana project earlier this summer.
This article was updated on Nov. 13, 2025. Added information included energy consumption, square footage, the bank consortium involved, as well as further loan specifics.
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