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Blackstone Hits $1.3T AUM as Data Centers Carry the Quarter

Blackstone Hits $1.3T AUM as Data Centers Carry the Quarter

The firm's data center and energy bets are paying off. Its private credit narrative is getting tested.

Nina Dale
April 27, 2026

In partnership with

Good morning. Blackstone just hit a record $1.3T in assets, and it’s increasingly being powered by AI. From data centers to energy infrastructure, the firm is betting big on the physical backbone behind the digital boom.

🎙️ This Week on No Cap: Fifth Wall CEO Brendan Wallace breaks down why real estate’s tech lag may be its biggest advantage, and how AI could turn proptech investors into the industry’s future operators.

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Market Snapshot

S&P 500

GSPC

7,165.08

Pct Chg:
+0.80%

FTSE NAREIT

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830.82

Pct Chg:
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10Y Treasury

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*Data as of 4/24/2026 market close.

Machine Money

Blackstone Hits $1.3T AUM as Data Centers Carry the Quarter

Image: Shutterstock

The asset giant is doubling down on AI infrastructure, and it’s paying off.

By the numbers: Blackstone reported a 25% jump in first-quarter distributable earnings to $1.8B, while assets under management climbed 12% to a record $1.3T. Growth was fueled in part by heavy investment in AI-linked sectors like data centers, energy, and digital infrastructure.

AI takes center stage: CEO Stephen Schwarzman emphasized Blackstone’s position as the world’s largest investor in AI-related infrastructure, spanning data centers, chips, and energy systems. The firm is also investing heavily in U.S. power grid modernization, anticipating surging electricity demand from AI workloads.

Data center pivot is working: Blackstone Real Estate Income Trust (BREIT) now allocates roughly 23% of its portfolio to data centers, helping deliver a 0.8% positive return in its core-plus real estate strategy. The vehicle also posted $1.2B in inflows last quarter—its strongest showing in three years.

Winners and weak spots: Logistics and multifamily are emerging as key tailwinds, supported by declining new supply and strong leasing pipelines. Meanwhile, opportunistic real estate strategies dipped 0.9%, weighed down by softer life sciences office performance and exposure to India’s equity market downturn.

Private credit scrutiny builds: Despite strong institutional backing, Blackstone acknowledged that investor concerns around private credit risks—amplified by fears of AI-driven disruption—have slowed capital inflows from wealthy individuals. Executives pushed back, calling many of the fears overstated.

AI disruption: While AI is expected to unlock opportunities across sectors like life sciences, Schwarzman flagged software and white-collar-heavy industries as potentially vulnerable to disruption, adding a layer of uncertainty for investors.

➥ THE TAKEAWAY

Dual-track strategy: Blackstone is pairing steady data center-driven returns with a longer-term bet on logistics and multifamily recovery. The AI push is already boosting performance, though private credit concerns could weigh on future capital flows.

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✍️ Editor’s Picks

Automate every workflow from acquisitions to legal: AI-generated lease abstractions, investment memos, Excel models, and recurring reports. Trusted by JLL, Cushman & Wakefield, and AvalonBay. (sponsored)
Resilient rebound: U.S. commercial property prices rose 2.1% in Q1 2026, led by industrial and suburban office as apartments stabilized and retail slipped.
Private power: Family offices and high-net-worth investors have become the dominant buyers in global CRE, reshaping pricing and stepping in as institutions pull back.
Data centers: CBRE posted a 19% revenue jump and its biggest profit gain in nearly four years, raising its outlook as data centers and AI-driven services fueled growth.
Tower capital: KKR is investing $1.5B into Vertical Bridge to fuel expansion of its 17,000-site tower portfolio amid rising demand for digital infrastructure.
Capital expansion: Chatham Financial is acquiring Hodes Weill to expand into capital raising and advisory, marking another step in the ongoing wave of CRE services consolidation.

🏘️ MULTIFAMILY

Muted momentum: U.S. apartment sales rose just 1% in Q1 as prices stabilized and cap rates edged higher, with growth concentrated in major metros.
Foreclosure fallout: Fannie Mae seized Atlanta’s Peach apartment tower for $24.6M after the borrower defaulted, following legal disputes and troubled refinancing.
Miami partnership: Cain and Kushner launched a joint venture with a 40-story, 364-unit Miami tower, targeting more residential and mixed-use projects across South Florida.

🏭 Industrial

Industrial rebound: U.S. industrial leasing jumped 17.8% in Q1 2026, driven by big-box demand and supply chain shifts, as the sector stabilizes with steady absorption and cautious growth.
Storage pushback: The self-storage boom is facing growing local resistance and slowing demand, as communities restrict new development and market conditions soften.
Made local: Anheuser-Busch is doubling its U.S. manufacturing investment to $600M to upgrade facilities, expand workforce training and support long-term growth.

🏬 RETAIL

Frugal shift: Wealthy consumers are cutting back on everyday essentials while increasing spending on experiences and discretionary purchases, reshaping retail demand.
Blended growth: Smoothie King is rolling out a new store design and planning 200+ locations as it accelerates nationwide growth in the fast-casual sector.
Historic reboot: Aardex transformed Phoenix’s One West Madison into a modern, flexible 27,000-square-foot retail and experiential space in a prime downtown location.

🏢 OFFICE

Debt takeover: Lone Star seized control of a largely vacant San Francisco office tower via a $216M credit bid after no auction offers, marking a steep valuation drop from its 2019 peak.
Hub shift: Companies are increasingly relocating headquarters within the same metro, downsizing and adopting flexible, hybrid-driven office strategies to cut costs and access talent.
Office rebound: U.S. office visits hit their highest March since the pandemic, with broad gains led by West Coast recovery, though traffic still trails 2019 levels.
AI divide: AI-driven leasing is fueling demand for top-tier office buildings while shrinking footprints and rising vacancies deepen the gap between high-performing assets and struggling properties.

🏨 HOSPITALITY

Growth stance: Kew Green Hotels is pushing ahead with expansion plans, betting on long-term strategy and operational resilience despite geopolitical and economic uncertainty.
Rooftop appeal: Hotels across the U.S. are elevating guest experiences with rooftop bars and restaurants that blend scenic views, flexible design and year-round dining appeal.
Refi refresh: A Bain Capital–Smith Hill loan refinanced a rebranded 281-key Tampa hotel as it undergoes upgrades and transitions to Curio Collection branding.

📈 CHART OF THE DAY

Gallup’s Economic Confidence Index dropped to -38 in April from -27 in March—its lowest since November 2023—though still above the June 2022 trough tied to peak inflation and gas prices.

Blackstone Hits $1.3T AUM as Data Centers Carry the Quarter

The firm's data center and energy bets are paying off. Its private credit narrative is getting tested.