Blackstone’s QTS Eyes $600M Loan
A data center that is part of a 210-megawatt Phoenix development will back the note.
QTS Realty Trust is seeking to secure a $599.8 million ABS financing package backed by its PHX2DC2 data center project in Phoenix, according to a S&P Global presale report.
Deutsche Bank will arrange the financing issued by Wilmington Trust. KeyBank is appointed as servicer.
The upcoming loan package is expected to close by the end of this month. It will have a 5-year anticipated repayment date and will mature in 30 years, according to the report.
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QTS Realty Trust will use the note to repay a part of existing debt backed by PHX2DC2. Wilmington Trust previously provided a $625 million loan, according to Maricopa County public records.
The turnkey data center has nearly 36 megawatts of capacity and is fully leased by a single hyperscale tenant under a staggered-maturity agreement spanning four phases, each pursuant to triple-net lease terms. Commercial Property Executive reached out to QTS to confirm the tenant, but did not immediately receive a reply.
The facility is part of QTS Realty Trust’s multi-building campus currently underway, which will boast a total capacity of 210 megawatts. Dubbed PHX2, the project will include five buildings on 80 acres and will be close to Phoenix Sky Harbor International Airport.
More QTS data center projects
PHX2 marks QTS’ second data center project in the metro. The Blackstone-owned company broke ground on the fifth building within the project in 2023, according to Data Center Dynamics. The firm’s first Phoenix development is a 32-megawatt facility at 120 E. Van Buren St.
Last year, QTS expanded its presence in the metro with QTS PHX3, a 3 million-square-foot planned data center campus in Glendale, Ariz. The project is set to include 16 facilities with more than 750 megawatts of critical power capacity on 375 acres.
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