Blackstone’s strategic investments in AI infrastructure and data centers have emerged as the primary driver of growth for the Wall Street investment giant’s $1.3 trillion portfolio in 2025. The firm reported that QTS, the data center developer and operator it acquired for $10 billion in 2021, was the single largest contributor to gains across its entire portfolio, signaling a major win for its digital infrastructure strategy amid the artificial intelligence boom.
In a year-end performance call on Wednesday, Blackstone co-founder and chairman Stephen Schwarzman described QTS as now “the world’s largest data center platform.” The company’s president, Jon Gray, attributed strong investor interest in AI as a chief driver behind Blackstone’s impressive $239 billion in inflows for the year—the highest total since a record-breaking 2021.
The infrastructure platform, powered primarily by data center appreciation, grew 40% during the year to $77 billion and raised $4 billion from investors in the fourth quarter alone. Infrastructure investments delivered exceptional returns of 8.4% for the quarter and 23.5% for the year, far outpacing other segments of Blackstone’s business.
In contrast, traditional real estate investments proved to be Blackstone’s weakest segment, with opportunistic strategies posting a 0.6% loss and core assets generating only 3% gains. However, Blackstone Real Estate Income Trust (BREIT), the firm’s $54 billion retail-focused real estate investment fund heavily invested in QTS, generated 8.1% returns during the year—more than double its sector benchmark.
Gray emphasized that QTS was the “largest single driver of returns” for both Blackstone’s infrastructure strategy and real estate portfolio. Schwarzman announced the firm would continue to “lean into key thematic areas such as digital infrastructure, including data centers, power, and electrification” as part of its broader investment strategy.
Beyond QTS, Blackstone has made significant AI-related investments, including stakes in AI developers Anthropic and OpenAI, storage provider DDN, and energy infrastructure. The firm completed an $11.5 billion acquisition of TXNM Energy, a utility holding company, and participated in a $7.5 billion loan to data center operator CoreWeave in 2024.
Gray noted that the AI infrastructure buildout requires “a massive amount of private debt capital for the construction of fabs, energy supply, and data centers,” positioning Blackstone’s $130 billion investment-grade private credit portfolio (up 30% during the year) to capitalize on this demand. Blackstone reported $14.5 billion in revenue for the year, up 9% annually.
Key Quotes
You have what’s happening in the AI world, economy growing faster, productivity picking up, and us investing in sectors we really like. We think that will really get this flywheel going, which is why you hear this optimism.
Jon Gray, Blackstone’s president, explained how AI-driven investor interest contributed to the firm’s record $239 billion in inflows for 2025, connecting AI development to broader economic growth and productivity gains.
The historic pace of investment taking place in the US to facilitate the development of artificial intelligence, including the design and manufacture of semiconductors, data center construction, and the expansion of power generation, is the key driver of economic growth today.
Stephen Schwarzman, Blackstone’s co-founder and chairman, positioned AI infrastructure investment as the primary engine of current U.S. economic growth, justifying the firm’s continued focus on this sector.
The build-out of AI infrastructure requires a massive amount of private debt capital for the construction of fabs, energy supply, and data centers.
Jon Gray highlighted how Blackstone’s $130 billion private credit portfolio is positioned to capitalize on the enormous capital requirements of AI infrastructure development, extending the firm’s AI exposure beyond equity investments.
Our Take
Blackstone’s results provide concrete evidence that the AI infrastructure layer may be where the most reliable returns are generated in this technology cycle. Unlike AI software companies facing intense competition and uncertain business models, data centers and power infrastructure represent tangible assets with long-term contracts and predictable cash flows. The 23.5% annual returns on infrastructure investments versus losses in traditional real estate highlight a historic sector rotation. What’s particularly noteworthy is how Blackstone is building a vertically integrated AI infrastructure stack—from data centers (QTS) to AI companies (Anthropic, OpenAI) to power generation (TXNM Energy) to financing (private credit). This strategy positions them to capture value across the entire AI value chain while hedging against uncertainty in any single segment. The $239 billion in inflows suggests institutional investors are recognizing that AI infrastructure offers a more conservative way to gain AI exposure than direct tech investments, potentially democratizing access to AI returns.
Why This Matters
This story represents a significant validation of AI infrastructure as a transformative investment thesis for institutional investors and signals where smart money is flowing in the AI economy. Blackstone’s success with QTS and data center investments demonstrates that the AI boom extends far beyond software companies and chip manufacturers—the physical infrastructure powering AI is becoming equally valuable.
The 40% growth in Blackstone’s infrastructure platform and its outperformance of traditional real estate investments suggests a fundamental shift in how capital is being allocated. As AI workloads demand exponentially more computing power and energy, data centers and power infrastructure are becoming critical bottlenecks and investment opportunities.
For businesses and investors, this signals that AI infrastructure investments may offer more stable returns than volatile tech stocks while still capturing AI growth. The fact that Blackstone’s $239 billion in inflows were driven partly by AI interest shows mainstream investors are seeking exposure to AI through infrastructure plays. This trend will likely accelerate competition for data center assets, drive up valuations, and potentially create supply constraints that could impact AI development timelines and costs across the industry.
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Source: https://www.businessinsider.com/how-blackstone-qts-data-center-bets-are-driving-growth-2026-1