QTS Realty Trust launches $3.9B bond sale to build Microsoft data center in Georgia

QTS Realty Trust, the Blackstone-backed data center operator, has kicked off a bond offering worth roughly $3.9 billion to finance a data center project in Georgia tied to Microsoft. Investor demand has reportedly surpassed $8 billion, more than double the offering size. The bonds are expected to carry investment-grade ratings while offering yields in the low-to-mid 7% range. Initial pricing discussions for the five-year notes landed around 7.63%. A debt machine built for the AI era This isn’t QTS’s first trip to the bond market. The company has raised over $6 billion in investment-grade bonds over the past year alone, all directed toward expanding its data center and AI-related infrastructure footprint. The latest offering essentially doubles down on that strategy, channeling capital into a facility designed to serve one of the world’s largest cloud computing providers. QTS has been on a tear since Blackstone took the company private in 2021 through a $10 billion cash acquisition at $78 per share. Why investors are piling in The 2x oversubscription on this deal is notable for a few reasons. First, $3.9 billion is not a small bond offering. Generating $8 billion in demand for a sin...