AirTrunk Pte., the Sydney-headquartered data center operator owned by Blackstone Inc., is preparing to raise at least A$500 million (approximately $358 million) through its inaugural issuance of asset-backed bonds. According to people familiar with the matter, the company intends to launch the bond in the second half of 2026 to refinance existing bank loans. This transaction is expected to be one of the first data center-backed securitizations in the Asia-Pacific region, marking a shift in how regional digital infrastructure is financed.
AirTrunk has reportedly appointed Deutsche Bank to lead the transaction. Sources, who requested anonymity to discuss private financial matters, indicated that the firm has already held meetings with institutional investors in Australia and other international markets to gauge interest. Representatives for Blackstone, AirTrunk, and Deutsche Bank have declined to comment on the plans. The Sydney-headquartered company, which Blackstone acquired in a multi-billion dollar deal, has been expanding its footprint to meet the needs of large-scale cloud service providers.
The move comes as credit investors continue to allocate significant capital to artificial intelligence and the digital infrastructure required to support it. A February 2026 report by Deloitte LLP estimated that investment in the Asia-Pacific data center sector will reach $800 billion by 2030. The region is increasingly viewed as a global hub for the sector, driven by the rapid expansion of data consumption and computing demand. The Deloitte report also emphasized that the Asia-Pacific region's share of global data center capacity is expected to grow significantly over the next four years, supported by government initiatives to improve digital infrastructure.
AirTrunk operates a platform of hyperscale data centers across key markets including Australia, Japan, Singapore, and Hong Kong. By utilizing asset-backed bonds, the company can leverage the long-term cash flows from its contracts with major technology companies to secure financing. This strategy allows the firm to move away from traditional bank debt as it scales its operations. The transition to bond financing is a common step for infrastructure assets that have reached a level of operational maturity where they can support investment-grade ratings.
However, the rapid growth in the sector has raised some concerns regarding the sustainability of the current investment pace. The Deloitte report noted that the influx of capital has fanned concerns of a credit-fueled bubble in the AI and data center space as new participants rush to take advantage of the demand. Blackstone’s decision to tap the bond market for AirTrunk represents a strategic effort to manage its debt profile in this high-growth environment. The A$500 million figure is a baseline, with the final size of the issuance likely to be determined by market conditions later in the year. AirTrunk’s existing facilities are designed to provide the high-density power and cooling required for modern graphics processing units, making them central to the region's technological expansion.