Data Center View - May 28, 2025 - Blue Owl closes $7 billion digital infrastructure fund

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NEWS ROUNDUP

FUNDRAISING: Blue Owl closes $7 billion digital infrastructure fund. Blue Owl Capital has announced the final close of its latest digital infrastructure vehicle, Blue Owl Digital Infrastructure Fund III (ODI III), with $7 billion in total capital commitments. The fund will focus on developing, acquiring, and owning hyperscale data centers and connectivity-related assets to serve the expanding digital infrastructure needs of AI and cloud-driven tech giants. ODI III is one of the largest data center-focused funds raised to date. Marc Zahr, Blue Owl’s Co-President and Global Head of Real Assets, called the opportunity “generational,” citing the massive capital required to support cloud and AI infrastructure. Matt A’Hearn, Head of Blue Owl Digital Infrastructure, emphasized that “size is critical in partnering with hyperscalers”, and the fund’s scale makes it a top contender in the space.

DEVELOPMENT: T5 Data Centers targets $16 billion in gigawatt expansions. T5 Data Centers is doubling down on hyperscale development with plans for two 1.2GW data center campuses—one in Fairburn, Georgia and the other in Grayslake, Illinois—marking a new chapter in the company’s megacampus strategy. The projects kick off a multibillion-dollar joint venture with Canadian investor QuadReal Property Group, which aims to build five massive gigawatt-scale campuses across major U.S. markets. The JV expects to raise $8 billion to support this effort. Executive VP David Mettler said these flagship sites are now the “heart of T5’s expansion strategy,” while EVP Robbie Sovie emphasized that existing utility relationships give the company a competitive edge in power-constrained regions like Atlanta and Chicago.

ACQUISITION: Flexential acquires two data centers in Georgia. Flexential has officially acquired full ownership of its Atlanta-area data center footprint, closing on two key facilities: Douglasville 2 and Norcross. The purchases mark a strategic shift from leasing to full ownership, allowing the company to invest more aggressively in infrastructure upgrades and capacity expansion. "Atlanta data center capacity is in great demand," said Ryan Mallory, president and COO of Flexential. “Owning these facilities strengthens our ability to provide long-term reliability, pricing stability, and operational agility across the Southeast.” This move is part of Flexential’s broader strategy to control more of its 330MW portfolio, which spans 40 data centers in 18 U.S. markets.

ENERGY: NRG to acquire LS Power’s generation portfolio for $12 billion. NRG Energy has announced a $12 billion acquisition of LS Power’s generation assets, bolstering its position to serve the exploding energy needs of hyperscalers and other large-load customers. The deal includes 18 natural gas plants totaling 13GW and a 6GW virtual power plant platform (CPower), with key assets concentrated in Texas and the Northeast. Once closed in Q1 2026, the acquisition will double NRG’s generation capacity to 25GW. CEO Larry Coben framed the acquisition as a strategic move to secure infrastructure optionality for future demand. “The acquisition meaningfully increases the number of sites available to support large loads in data centers,” he said during the Q1 earnings call.

FINANCING: STACK Infrastructure secures $1.4 billion in green financing. STACK Infrastructure has closed a $1.4 billion green financing facility, backed by 10 fully stabilized data centers across its North American portfolio. “This financing demonstrates STACK’s differentiated market position and our ability to attract scale capital across the development cycle,” said Heather Paduck, CFO of STACK Americas.

READ: How Arizona data center construction will explode with AI adoption.

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