Blue Owl Bets Big on AI Data Centers, WSJ Reports
- Editor
- Feb 5
- 2 min read
What's happening: Blue Owl Capital, traditionally a private-credit lender, is making a strategic pivot into AI infrastructure by backing the first data center in the Stargate project, according to a recent Wall Street Journal report.
Blue Owl Capital, known primarily as a private-credit lender, is financing the first data center for Stargate, a high-profile AI initiative, according to a Wall report. The move represents a significant shift for the asset management firm as it expands beyond its traditional lending roots.
Why it matters:
Infrastructure - The move signals Wall Street's growing investment in AI computing capacity, addressing a critical bottleneck in AI development
Market shift - A major private credit player's entry into AI infrastructure could spark similar moves from other traditional financial firms
Returns - The investment demonstrates how AI infrastructure can deliver private equity-like returns through real estate plays
The Key Moves:
Expansion - Blue Owl leverages expertise from its Oak Street Partners and IPI Partners acquisitions to enter the data center space
Scale - Company targets nearly quadrupling its data center holdings from $13 billion to $50 billion by 2026
Strategy - Firm employs triple-net leases on data centers to generate approximately 15% annual returns
By the Numbers:
Portfolio - Blue Owl currently manages $235 billion in total investments
Growth - Stock value has increased 60% over the past year
Target - Aims to control $50 billion in data center assets by end of 2026
Key Players:
Doug Ostrover - Blue Owl co-founder, hedge fund veteran turned AI infrastructure investor
Marc Lipschultz - Co-founder driving the firm's strategic expansion into tech
Craig Packer - Co-founder helping transition the firm from traditional lending to AI infrastructure
The Wrap: Blue Owl's ambitious move into AI infrastructure marks a significant shift in how traditional Wall Street firms are approaching the AI boom, potentially creating a new model for financing the next generation of computing infrastructure while generating substantial returns through real estate strategies.Blue Owl Bets Big on AI Data Centers
Comments