Blackstone filed S-11 registration for a non-traded data-center REIT seeking $1.75 billion at $20 per share across 87.5 million units. The vehicle will acquire already-built, pre-leased hyperscale facilities serving AI compute demand, bypassing construction and lease-up risk. The structure mirrors Blackstone Real Estate Income Trust but narrows to a single asset class at the top of its cycle.

The offering targets family offices and RIA platforms that cannot access Blackstone's private infrastructure funds but want exposure to the same thesis: long-term triple-net leases to Azure, AWS, and Oracle Cloud at contractual escalators tied to power cost and CPI. The REIT will not develop. It will not spec. It buys cash-flowing boxes in Northern Virginia, Phoenix, and Dallas-Fort Worth where power allocations are already secured and tenant fit-out is complete. Blackstone is pricing the illiquidity premium into the $20 share price, roughly 15–18% above the NTM AFFO multiples of Digital Realty and Equinix on a leverage-adjusted basis.

This matters because Blackstone is not waiting for the listed REIT market to recover. The firm is instead creating a parallel liquidity path for a narrow slice of its data-center portfolio, one that does not require quarterly earnings calls or REIT analyst coverage. The $1.75 billion raise would make this the largest non-traded REIT IPO since Blackstone's own BREIT in 2017, and it would immediately become the third-largest pool of permanent capital targeting hyperscale data infrastructure behind Digital Realty and Equinix. The timing is deliberate: AI capital expenditure from the hyperscalers is running at $250–280 billion annualized, and vacancy in primary power-constrained markets is below 3% for facilities over 20 MW. Blackstone is securitizing the winners before the development pipeline floods the market in 2027–2028.

Allocators should track the final prospectus for disclosed NOI on the seed portfolio, which will clarify whether Blackstone is contributing trophy assets or simply monetizing older acquisitions at a markup. The firm has not disclosed leverage targets, but non-traded REITs typically operate at 50–60% LTV, higher than the 35–45% range for traded peers. That spread matters in a rising-rate environment. Watch the allocation by investor type: if 40%+ of the raise comes from RIAs rather than family offices, it signals retail distribution at scale. The SEC comment period runs through mid-June, with pricing expected in Q3 2026.

Blackstone has $35 billion in data-center assets across funds. This REIT is the exit path for 5% of that, and the template for more.