BlackRock (BLK) Stock: Asset Manager Pursues $27 Billion Data Center Partnership in Spain

TLDR

• BlackRock’s Global Infrastructure Partners is finalizing a $27 billion partnership with Spanish construction firm ACS to develop data centers.
• GIP will take a 50% stake in ACS Digital & Energy unit through $6 billion in equity capital and $21 billion in debt financing.
• The deal follows GIP’s participation in the $40 billion acquisition of Aligned Data Centers alongside Microsoft and Nvidia last month.
• GIP manages over $180 billion in assets globally and is pursuing a separate $38 billion acquisition of utility company AES Corp.
• Tech companies are projected to spend $400 billion on AI infrastructure this year according to Morgan Stanley estimates.

BlackRock’s Global Infrastructure Partners is close to finalizing a $27 billion partnership with Spanish construction firm ACS. The deal focuses on developing data centers to capitalize on growing AI computing demand.

GIP plans to acquire a 50% stake in ACS Digital & Energy unit. The investment includes $6 billion in equity capital to be contributed progressively. Another $21 billion will come from debt financing.

BlackRock, Inc., BLK

The partnership values ACS’s data center business at the high end of its target range. This deal represents another major move by BlackRock in the AI infrastructure space.

BlackRock acquired GIP to strengthen its infrastructure investing capabilities. The asset manager has been using GIP to pursue large-scale deals in the sector. Data centers have become a key focus area for the firm.

Building an AI Infrastructure Portfolio

GIP participated in the $40 billion acquisition of Texas-based Aligned Data Centers last month. That deal included Microsoft and Nvidia as consortium partners. The transaction reflects BlackRock’s strategy to build exposure to AI infrastructure assets.

GIP manages over $180 billion in assets globally. The firm is part of the Artificial Intelligence Infrastructure Partnership. This consortium focuses specifically on AI-related investments.

BlackRock is also pursuing utility assets through GIP. The firm is working on a $38 billion acquisition of American utility company AES Corp. That deal would provide access to electricity production and supply capabilities.

Data Center Demand Drives Deals

Power supply has become critical as tech companies expand data center operations. Limited power capacity and surging AI computing demand are pushing digital infrastructure valuations to record levels.

Major tech companies are spending heavily on AI infrastructure this year. Morgan Stanley estimates put total spending at nearly $400 billion. This spending spree is creating opportunities for infrastructure investors.

ACS operates in construction of highways, railways, and maritime facilities. The Madrid-based company has been expanding into data center development. The firm constructs and operates data centers through subsidiaries and partnerships.

The Spanish company had targeted a data center business valuation between $3.5 billion and $6 billion by 2030. The GIP partnership prices it at that high end now.

Both BlackRock and ACS declined to comment on the reported partnership. GIP did not respond to requests for comment. Market sources familiar with the discussions provided details to Spanish business newspaper Expansion.

ACS plans to update its data center strategy at an investor day on Friday. The Spanish company will provide more information about its infrastructure plans at that event.

BlackRock shares currently have a Strong Buy consensus rating from Wall Street analysts. The rating is based on 11 Buy recommendations and one Hold issued over the past three months. The average price target of $1,355.91 suggests nearly 24% upside from current trading levels.

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