Home / Business and Economy / Blackstone Fuels AI Data Centers With $3.5 Billion Loan
Blackstone Fuels AI Data Centers With $3.5 Billion Loan
6 Feb
Summary
- Blackstone Inc. is finalizing a $3.5 billion loan for Firmus Technologies' AI data center expansion.
- AI infrastructure investment is projected to exceed $3 trillion globally, largely debt-funded.
- A recent AI tool release caused a $285 billion stock market selloff across software and finance sectors.
Blackstone Inc. is reportedly finalizing a substantial loan exceeding A$5 billion ($3.5 billion) to support the data center expansion of Australian startup Firmus Technologies Pty. This move signifies continued investment in digital infrastructure, particularly for AI growth, despite recent market turbulence.
The financing deal, expected to be announced soon, arrives as the technology sector experiences a selloff driven by concerns over escalating AI-related expenditures. Investment in data centers to support AI is projected to surpass $3 trillion, with debt financing playing a crucial role.
Firmus Technologies has a strategic agreement to develop up to 1.6 gigawatts of data centers across Australia by 2028, powered by Nvidia Corp. chips. This development follows a recent A$830 million raised in previous funding rounds.
The broader market has seen significant impact from AI developments, including a $285 billion stock market rout triggered by an AI automation tool from Anthropic PBC. This event affected software, financial services, and asset management sectors, causing notable declines in stock indices.
This AI-driven selloff has also impacted business development companies and major investment firms, with several experiencing significant drops in their stock values. The rapid advancement and deployment of AI tools, such as those from Anthropic, are intensifying competition and reshaping various industries, including legal services.
