Blackstone Says Not Seeing Risk of a Data Center Bubble

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00:00In real estate, you find bubbles where there is too much speculative supply for the demand to

00:06meet it. And that is not what we see happening in data centers. We are in constant communication

00:11with the largest hyperscalers, the most advanced technology users. And we, as the word I used

00:17before, I'll say again, exponential increases in the demand they have for the compute we can help

00:23them deliver through a data center. I'd say additionally, data centers are not, at least

00:28in the way we do it, we're not building data centers speculatively. So we don't start building

00:32vertically until we have a long-term lease with a high credit tenant. And so again, that kind of

00:38negates the argument that a bubble could be forming. We don't have speculative supply.

00:43And I think what we're seeing happen is just the digital infrastructure commitments these users

00:48are making are multi-year plans so that they can continue to deliver on the growth for their

00:53businesses. So we remain really enthusiastic about the sector.