NEW YORK CITY — Private equity giant Blackstone Inc. (NYSE: BX) has provided a $925 million debt facility for Colovore, a data center owner-operator that is back by New York City-based alternative investment firm King Street Capital Management.
California-based Colovore will utilize the capital to fund development of new data centers around the country that will be purpose-built to support artificial intelligence (AI) initiatives and infrastructure. According to Colovore, the company’s liquid-cooled facilities are designed from the ground-up to support the intense demands of modern AI chips, offering high per-cabinet cooling densities and smaller physical footprints.
The company also said that new data centers stemming from the Blackstone credit facility will be located in “metro edge” markets. A subsequent statement from Sean Holzknecht, Colovore’s president and co-founder, stated that the first wave of new data center developments stemming from the Blackstone credit facility would include projects in the Reno, Chicago and Austin areas.
“As AI infrastructure shifts rapidly toward highly distributed, inference-driven workloads, we remain focused on building the national backbone for this next phase — scalable, liquid-cooled data center platforms purpose-built for edge and core inference,” said Holzknecht.
“With more than a decade of experience in liquid cooling, Colovore is uniquely positioned to provide infrastructure to meet the soaring demand for high-density, AI-optimized data centers,” added Brian Higgins, founder and managing partner of King Street. “We look forward to further leveraging King Street’s real estate and credit capabilities to support their rapid expansion.”
The stock price of Blackstone, which has more than $1 trillion in assets under management across its various verticals and subsidiaries, opened at $148.75 per share on Monday, May 12, up nearly 20 percent from $124.83 per share a year ago.
— Taylor Williams