Blackstone Digital Infrastructure Trust (BXDC) Q2 FY26 earnings call: guidance and Q&A

How is growing NIMBYism affecting developers' willingness to sell assets and recycle capital, given potential difficulties in new development?

Management acknowledges growing NIMBYism but states that significant development is still occurring. The motivation for developers to sell and recycle capital remains strong due to increasing capital requirements for new projects, despite potential difficulties.

“So I will say you're spot-on. There is growing NIMBYism and just, sort of, pushback around new development. That being said, there is still an enormous amount of development that's taking place in the market.”

asked by Brendan Lynch · answered by Mike Forman

How does Meta potentially leasing compute capacity to Anthropic reflect on the supply-demand balance within hyperscalers' portfolios?

Management views this as hyperscalers finding ways to monetize their increasing compute capacity. The fundamental point is that the world has run out of compute, and hyperscalers are building significantly more, which they will monetize in various ways.

“I think the most important thing going on here is the world has run out of compute. The large hyperscalers have the largest balance sheets in the world. They're building out significantly more compute. There's lots of ways they'll be able to monetize that.”

asked by Brendan Lynch · answered by Mike Forman

What is the competitive landscape for data center acquisitions, and what are the trends in pricing?

Management notes $30 billion in transactions year-to-date, indicating active deal flow. They feel confident in their opportunities and ability to execute, highlighting the potential for programmatic deals with counterparties.

“I think we feel very confident with the opportunities that we're engaged on and looking at. And I think the idea of being able to do something programmatic with our counterparties is very attractive, both for us and for them.”

asked by Aryeh Klein · answered by Nicholas Pell

Has credit market volatility led to changes in pricing for data center assets?

Management states it's "a little early to tell on pricing" but suggests volatility might influence how counterparties think about alternatives and exit strategies. They believe uncertainty and volatility generally facilitate the market.

“It's probably a little early to tell on pricing. I think where we're seeing it translate potentially just in terms of, like, how counterparties think about their alternatives, their expectations, their choices of how and when to execute on an exit.”

asked by Eric Luebchow · answered by Nicholas Pell

Does BXDC still intend to deploy IPO capital within 3 quarters, and would they consider expanding their buy box to data centers under development?

Management is confident in deploying capital from the robust pipeline within the expected timeline. While they are evaluating forwards and planting seeds for future opportunities, their current priority is deploying IPO proceeds into deals that pay rent upon closing, sticking to their defined buy box.

“I think we're trying to prioritize for our IPO deployment into deals and assets that can pay rent upon closing.”

asked by Michael Funk · answered by Nicholas Pell

Is the expectation of limited competition for deals, given their size, playing out in negotiations?

Management confirms that there isn't a lot of capital specifically formed for their stabilized data center strategy. While some competition exists, BXDC feels well-positioned due to its unique strategy, Blackstone's relationships, and the ability to offer programmatic solutions to developers.

“I'd say that, look, there isn't a lot of capital formed as we alluded to in our remarks, and I think we alluded to on the road and around the IPO with the stabilized data center strategy.”

asked by Nicholas Del Deo · answered by Nicholas Pell