"Blue Owl, based in New York City, recently agreed to provide $240 million of financing for a data center in Minneapolis that was purchased by investors Cloud Capital and Arcapita Group, according to two people with knowledge of the transaction. The company plans to both invest in and lend to a recently announced large data center development in Wichita Falls, Texas, being built by the Dallas-based firm Skybox Datacenters."
"In February, the firm disclosed that it holds a $500 million loan connected to a data center being built in Lancaster, Pennsylvania, for the AI cloud provider CoreWeave. Analysts said they see the firm's growing focus on debt as a way for it to broaden its exposure to lucrative digital assets."
"They are in a position to be able to evaluate the efficacy of any deal, and they are definitely smart credit investors. It makes complete sense conceptually to me. The firm's success in data center investment is a contrast to headwinds being felt elsewhere in its portfolio."
Blue Owl Capital is significantly expanding its exposure to artificial intelligence infrastructure through both equity investments and debt financing in data centers. The firm raised nearly $10 billion last year for digital infrastructure, primarily for data center ownership stakes, and has now broadened its strategy to include substantial lending. Recent transactions include a $240 million loan for a Minneapolis data center purchased by Cloud Capital and Arcapita Group, lending involvement in a Skybox Datacenters project in Wichita Falls, Texas, and a previously disclosed $500 million loan for CoreWeave's Lancaster, Pennsylvania facility. Industry analysts view this dual investment-lending approach as a smart strategy that allows Blue Owl to evaluate deal quality while capturing returns from lucrative digital assets.
#data-center-lending #ai-infrastructure-investment #blue-owl-capital #digital-infrastructure-financing
Read at Business Insider
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