ACS, BlackRock to seal $27 billion data centre deal, report says

Spanish construction giant ACS is reportedly nearing a €23 billion ($26.8 billion) partnership with BlackRock's Global Infrastructure Partners (GIP) to develop data centers, with GIP acquiring a 50% stake in ACS Digital & Energy through €5 billion in equity and €18 billion in debt. This potential deal, which values ACS's data center business at the high end of its 2030 target, underscores the surging demand and high valuations in digital infrastructure driven by AI computing, a sector where GIP has been actively investing. ACS is expected to provide further details on its data center strategy at an upcoming investor day.

Analysis

Spanish construction firm ACS is reportedly nearing a significant €23 billion partnership with BlackRock's Global Infrastructure Partners (GIP) for its Digital & Energy unit, which focuses on data centers. GIP is expected to acquire a 50% stake, contributing €5 billion in equity and €18 billion in debt. This proposed transaction would value ACS's data center business at the upper end of its previously projected €3-5 billion valuation target for 2030, indicating a strong market premium.

The reported deal underscores the escalating demand and record valuations within the digital infrastructure sector, primarily fueled by the surging requirements of AI computing and existing power capacity constraints. Morgan Stanley estimates major tech companies will spend $400 billion on AI infrastructure this year, highlighting the significant capital flow into this segment. GIP's recent participation in the $40 billion acquisition of Aligned, alongside Microsoft and Nvidia, further validates its strategic focus on this high-growth area.

While ACS and BlackRock declined comment, the timing is notable as ACS is scheduled to update its data center strategy at an investor day on Friday. This potential partnership suggests a strategic acceleration of ACS's digital infrastructure ambitions, leveraging GIP's substantial capital and expertise in large-scale infrastructure investments. The deal structure, incorporating significant debt, also points to the capital-intensive nature of data center development.

Key Decisions for Investors

• Investors should closely monitor ACS's upcoming investor day for official confirmation and detailed strategic updates on its data center business and the reported GIP partnership.
• Evaluate the implied valuation of ACS's digital infrastructure assets, which suggests a significant premium driven by robust AI computing demand and limited capacity.
• Consider the broader market implications for digital infrastructure investments, as this deal highlights strong private capital interest and potential for further M&A in the sector.