Blackstone launched a data center REIT in May at $20 per share, which has since declined approximately 16% in value, with shares closing under $17. Wall Street is positioning AI infrastructure as a portfolio diversification opportunity, with an estimated total addressable market exceeding $1 trillion over the coming years. However, 70% of Americans oppose data center construction in their local areas, and the states of New York and Texas have implemented moratoriums on new projects. Experts warn of major sector challenges, including massive capital requirements, electricity supply constraints, and technological obsolescence risks, cautioning retail investors to proceed carefully. Approximately 94% of Blackstone REIT ownership remains institutional, with retail investors largely excluded so far.
Source: Read the original article
