The Canada Pension Plan Investment Board is teaming up with Blackstone to acquire Australian data-centre operator AirTrunk.

CPPIB and Blackstone have entered into a definitive agreement to purchase AirTrunk from Melbourne-based Macquarie Asset Management and the Toronto-based Public Sector Pension Investment Board.

The deal values Sydney-based AirTrunk at an enterprise value of $29.1 billion (A$24 billion), according to a CPPIB and Blackstone. Founded in 2015, AirTrunk develops and operates data centres across the Asia-Pacific, including Australia, Hong Kong, Japan, Malaysia and Singapore.

The proposed deal calls for Toronto-based CPPIB to acquire a minority 12%, while New York-based investment behemoth Blackstone is slated to be the majority owner.

“CPP Investments has invested in the Asia-Pacific data centre sector for several years, and we have witnessed significant growth in this space, fuelled by a strong demand for digital infrastructure and, more recently, the increasing adoption of artificial intelligence,” said Max Biagosch, CPPIB’s global head of real assets and head of Europe, in a news release.

By acquiring a piece of AirTrunk, the pension fund manager will build on existing Asia-Pacific data-centre assets in Australia, Hong Kong, Japan, Korea, Malaysia and Singapore, as well as the U.S.

“This investment represents another milestone in our broader data-centre strategy, further enhancing our footprint in the region to the benefit of CPP contributors and beneficiaries,” said Biagosch.

The proposed transaction requires approval from Australian Foreign Investment Review Board  

Pictured: AirTrunk data centre development project in Tokyo

Rendering AirTrunk