Blackstone’s QTS to Secure $870M Refi
A collection of five hyperscale data centers backs the transaction.
Blackstone’s QTS Data Centers is seeking to secure a financing package of up to $870 million backed by five data center campuses spread across Phoenix, Richmond, Va., and Dallas-Fort Worth, according to a Fitch Ratings presale report. The expected closing date for the transaction is July 1, 2026.
The package consists of up to eight fixed-rate notes totaling up to $715 million, with five- or seven-year annual repayment dates. The financing could also include a floating-rate loan of up to $155 million that will have a two-year annual repayment date, with two one-year extension options.
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Before the annual repayment dates, all notes will be interest-only and will have a 30-year final legal maturity date. Proceeds will be used to repay existing debt while also covering fund reserves, transaction costs and general corporate needs.
KeyBank will act as servicer and Wilmington Trust National Association will serve as indenture trustee. TD Securities will work as sole structuring advisor.
Portfolio highlights
The portfolio in question totals 181.5 megawatts and 1.5 million square feet. It includes five turnkey hyperscale data centers that are fully leased to three investment grade-rated tenants and three small network carrier tenants, with a weighted average remaining lease term of nearly 14 years. The largest tenant occupies three properties, comprising 57 percent of all critical IT load of the collection.
The Phoenix properties are part of a five-building campus known as Phoenix 2. The buildings backing the loan include PHX2DC2, PHX2DC3 and PHX2DC5, all delivered in 2024. They are located at 1250, 1400 and 1500 N. 40th St. in Phoenix.
The data center complex occupies 80 acres, has 210 megawatts of critical capacity and is close to Phoenix Sky Harbor International Airport.
The second property backing the financing package is RIC2DC3, the third facility of QTS’ second Richmond data center campus, located at 6050 Technology Road in Sandston, Va. The complex spans roughly 85 acres and is still under construction. It could deliver up to 180 megawatts in planned capacity.
The third facility is DFW1DC4, located at 6311 Longhorn Drive in Irving, Texas. It is part of QTS’ first and only mega-campus in the city. It comprises six buildings across 56 acres and has a total capacity of more than 165 megawatts.
Other QTS refinancing moves
The Blackstone-owned QTS is one of the top data center developers in the country. Its portfolio includes more than 90 properties across 15 states and totaling more than 5 gigawatts of critical power capacity under consumer contract.
In March, QTS obtained a $510 million ABS financing package backed by three data centers in Phoenix and Richmond. The facilities are part of the same campuses that are featured in the current issuance.
More recently, a joint venture between Blackstone and QTS initiated a $1.3 billion CMBS refinancing transaction involving a data center in New Albany, Ohio. The deal is expected to close by the end of this month.
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