Blue Owl Swoops In As Major Backer of New, High-Profile, Sustainable U.S. Data Center Construction

With the global demand for data centers continuing to surge ahead, fueled by the proliferation of artificial intelligence (AI), cloud computing, and digital services, it is unsurprising that we are seeing aggressive investment strategies, beyond those of the existing hyperscalers.

One of the dynamic players in this market is Blue Owl Capital, a leading asset management firm that has made significant strides in the data center sector. Back in October 2024 we reported on its acquisition of IPI Partners, a digital infrastructure fund manager, for approximately $1 billion.

This acquisition added over $11 billion to the assets Blue Owl manages and focused specifically on digital infrastructure initiatives. This acquisition was completed as of January 5, 2025 and IPI’s Managing Partner, Matt A’Hearn has been appointed Head of Blue Owl’s digital infrastructure strategy.

A Key Player In Digital Infrastructure and Data Centers

With multi-billion-dollar joint ventures and financing initiatives, Blue Owl is positioning itself as a key player in the digital infrastructure space. The company investments in data centers, the implications of its strategic moves, and the broader impact on the AI and digital economy highlights the importance of investment in the data center to the economy overall.

With the rapid growth of the data center industry, it is unsurprising that aggressive investment fund management is seeing it as an opportunity. Analysts continue to emphasize that the global data center market is expected to grow at a compound annual growth rate (CAGR) of 10.2% from 2023 to 2030, reaching $517.17 billion by the end of the decade.

In this rapidly evolving landscape, Blue Owl Capital has emerged as a significant contributor. The firm’s investments in data centers are not just about capitalizing on current trends but also about shaping the future of digital infrastructure.

Spreading the Wealth

In August 2024, Blue Owl Capital partnered with Chirisa Technology Parks and PowerHouse Data Centers for an up to $5 billion joint venture to develop large-scale AI and HPC data centers for CoreWeave and potentially other clients.

This initiative underscores the energy and optimism surrounding the data center sector. The collaboration focuses on creating energy-efficient and sustainable facilities, leveraging cutting-edge technologies to meet the stringent demands of modern data processing and storage. This move also aligns with the global push toward sustainability in the digital infrastructure sector, addressing both environmental concerns and operational efficiency.

According to Commercial Search, the joint venture aims to develop state-of-the-art data centers that cater to the growing needs of hyperscale clients, cloud service providers, and enterprises. Developments are planned across key markets that include New Jersey, Pennsylvania, Texas, Nevada, and Kentucky, with the first phase of this venture being a new data center on Chirisa’s 350-acre data center campus near Richmond, Virginia, a facility which will offer 120 MW of capacity.

Current plans are for the data center space to become available in 2025 and 2026. In December, Blue Owl and this group of developers secured a $600 million construction loan for the data center project in Richmond.

Strategic Entry Into AI Data Centers

In October 2024, Blue Owl Capital’s strategic entry into AI-focused data centers was marked by a $3.4 billion joint venture with Primary Digital Infrastructure and Crusoe Energy Systems in an initiative tailored to the unique requirements of AI workloads.

AI applications demand immense computational power, specialized hardware, and efficient cooling systems—all of which are central to the design of these next-generation facilities. In this case the plan is for a 998,000 sq ft build-to-suit data center project at the Lancium Clean Campus in Abilene, Texas.

The venture not only underscores Blue Owl’s commitment to technological innovation but also highlights the firm’s ability to anticipate and address emerging market needs. By focusing on AI-specific infrastructure, Blue Owl is tapping into a niche yet rapidly expanding segment of the data center market.

Enter JPMorgan Chase and Oracle

As of the last week in January 2025 this joint venture secured $2.3 billion in construction financing for data center projects arranged by Newmark Group, Inc. To wit, as reported by Bloomberg,, we know that JPMorgan Chase & Co. is extending this $2.3 billion in financing for a data center development in Abilene, Texas, owned by Blue Owl Capital Inc. and its partners. It is of course for the work ongoing at the 1.2 GW Lancium Clean Campus.

The project, which began construction last year as stated aboive, is being developed by Blue Owl in collaboration with Crusoe Energy Systems and Primary Digital Infrastructure. And this project is already leased to Oracle Corp., according to individuals familiar with the matter who requested anonymity in the report due to the private nature of the information.  

A financing arrangement for the development was handled by a Newmark Group Inc. team, including Jordan Roeschlaub and Brent Mayo, as noted in an official statement.  Representatives for Newmark and Blue Owl declined to comment on Oracle’s role as the tenant, while spokespeople for JPMorgan and Oracle either declined to comment or didn’t immediately respond to Bloomberg's inquiries.  

This week as you might've heard, Oracle unveiled a $100 billion joint venture with SoftBank Group Corp. and OpenAI, dubbed Stargate, aimed at building data centers for artificial intelligence infrastructure. During an announcement at the White House on Tuesday, Oracle Chairman Larry Ellison confirmed the first project under the Stargate initiative is located in Abilene at Lancium's site.  

“The first of them are under construction in Texas,” Ellison said. “There are 10 buildings currently being built, but that will expand to 20 in other locations beyond the Abilene location, which is our first.” 

On the Ground Synergies

This 2.3 billion funding for Blue Owl's JV in Texas is directed toward the development of a 206 MW build-to-suit data center, with a focus on sustainability and scalability in high-performance, AI-focused data centers.

The project, which broke ground in 2024 plans on 300 MW of on-site power generation to enable the delivery of clean power at scale to site customers. Initial commissioning is expected in 2025. This financing milestone demonstrates the confidence of institutional investors in Blue Owl’s vision and execution capabilities.

Newmark’s expertise in structuring complex financing deals has been instrumental in advancing Blue Owl’s projects. Similar to the partnerships sprining up with a focus on delivering technology innovations, this collaboration exemplifies the synergy between asset managers, developers, and financial institutions in driving innovation in the data center sector.

Sustainability a Driving Factor in New Data Center Development

A defining features of Blue Owl’s data center investments is a strong emphasis on sustainability. The firm recognizes that the energy-intensive nature of data centers necessitates a shift toward greener solutions.

From renewable energy integration to advanced cooling technologies, Blue Owl is looking towards setting new benchmarks for sustainable operations. This is exemplified by the $5 billion joint venture including plans for facilities powered by renewable energy sources, reducing their carbon footprint.

Similarly, AI-focused data centers are designed with energy-efficient hardware and innovative cooling systems to minimize environmental impact. By embedding sustainability into its projects, Blue Owl not only addresses current and future regulatory requirements but also enhances its appeal to environmentally conscious clients and investors.

A Blueprint for Success?

These strategic investments in data centers represent a forward-thinking approach to digital infrastructure. By focusing on AI-driven facilities, sustainability, and innovation, the Blue Owl is not only capitalizing on current trends but also having a hand in shaping the future of the digital economy.

If anything, the success that Blue Owl’s initiatives are seeing in attracting institutional investment serves as a blueprint for success in data center project development.

Through multi-billion-dollar joint ventures, strategic financing, and a commitment to meeting goals in sustainable development, the company is one of those defining standards for what is possible in the realm of data centers; development, funding, and hopefully, soon to be operation.

Comparison of Data Center Industry Investment Competitors 

Blue Owl Capital stands out for its focus on flexible financing solutions for data center developers, particularly in the AI and hyperscale sectors. The company's recent moves highlight its commitment to supporting next-generation infrastructure.

And now, some brief comparison of Blue Owl Capital’s recent data center and digital infrastructure investments with those of its main competitors in the sector seems in order. 

Blackstone and Brookfield

Blackstone and Brookfield might be leading the data center investors' pack in terms of large-scale acquisitions and developments, with a strong focus on hyperscale and AI-ready facilities.

Blackstone has been one of the most active investors in the data center sector, with a focus on hyperscale and AI-ready facilities. The firm’s infrastructure arm, Blackstone Infrastructure Partners, has made significant acquisitions and developments to meet the growing demand for digital infrastructure. In recent years, Blackstone acquired QTS Realty Trust for $10 billion (one of the largest data center deals in history -- at its time) to expand its hyperscale and AI capabilities. Blackstone has also partnered with the world's largest data center operator by square footage, Digital Realty, to develop AI-focused data centers in key markets, including Silicon Valley and Northern Virginia. 

Brookfield Asset Management (BAM) has been a major investor in digital infrastructure, with a focus on data centers and fiber networks. The firm has acquired and developed hyperscale data centers to meet the growing demand for AI and cloud computing. Brookfield recently acquired Data4, a leading European data center operator, to expand its hyperscale and AI capabilities. Brookfield is also partnering with Intel to develop AI-ready data centers in the U.S., focusing on high-density computing and liquid cooling solutions.

KKR, Apollo, and Ares

For their parts, KKR, Apollo, and Ares are also active in financing and developing data center projects, with a particular emphasis on AI and cloud computing demand.

KKR & Co. Inc. (KKR) has been a major player in digital infrastructure, with a focus on acquiring and developing data center assets. The firm has invested heavily in hyperscale and edge data centers, leveraging its Global Infrastructure Fund to capitalize on the growing demand for AI and cloud computing infrastructure. KKR recently acquired a majority stake in Global Technical Realty (GTR), a European data center developer, to expand its footprint in the region. KKR has also invested heavily in CyrusOne, a leading hyperscale data center operator, to support its expansion into the AI and HPC markets.

Apollo has been active in the digital infrastructure space, focusing on financing and developing data center projects. The firm has provided debt and equity financing to support the growth of hyperscale and edge data centers. As recently noted by Data Center Knowledge, Apollo has provided $500 million in financing to a leading data center operator for the development of AI-ready facilities in the U.S. and Europe. Apollo has also invested in EdgeCore Internet Real Estate, a developer of hyperscale data centers, to support its expansion into AI and cloud computing markets.

Ares Management has been a key player in financing digital infrastructure projects, with a focus on data centers and fiber networks. The firm has provided capital to support the development of hyperscale and AI-focused facilities. Ares has partnered with Prime Data Centers to develop a 100 MW hyperscale data center campus in the Midwest, targeting AI and cloud computing demand. Ares also recently provided $300 million in financing for the expansion of a leading data center operator’s AI-ready facilities, according to reporting by Data Center Dynamics.

TPG and Carlyle

Finally, TPG and The Carlyle Group are also expanding their footprints in key markets, leveraging partnerships to develop AI-ready data centers.

TPG has been active in the digital infrastructure space through its infrastructure and real estate funds. The firm has invested in hyperscale and edge data centers, with a focus on AI and cloud computing. TPG recently acquired Cirrus Data Centers, a leading Australian operator, to expand its hyperscale and AI capabilities in the Asia-Pacific region. TPG has also partnered with STACK Infrastructure to develop AI-ready data centers in key U.S. markets. 

Carlyle has also been a significant player in the data center sector, with a focus on hyperscale and AI-ready facilities. The firm has provided capital to support the development of next-generation digital infrastructure, and has invested in EdgeConneX, a leading edge data center operator, to support its expansion into AI and high-performance computing markets. Carlyle has also partnered with Google to develop AI-focused data centers in Europe and the U.S. 

At Data Center Frontier, we not only talk the industry talk, we walk the industry walk. In that spirit, DCF Staff members may occasionally employ AI tools to assist with research for articles and content. Portions of this article were created with help from OpenAI's GPT4 and deepseek.

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