Blackstone and Canada Pension Plan Investment Board (CPP Investments) has agreed to buy AirTrunk in a deal valuing the Australian data center operator at A$24 billion ($16 billion), including debt and investment commitments for ongoing projects.

The transaction—which is subject to the approval of Australia’s Foreign Investment Revenue Board—will be Blackstone’s largest investment in the Asia Pacific and will strengthen the company’s foothold in the region amid booming demand for AI-powered digital infrastructure, the New York-based private equity firm said in a statement.

The partners are buying 88% of Airtrunk from Macquarie Asset Management and the Public Sector Pension Investment Board (PSP Investments). AirTrunk’s founder and CEO Robin Khuda also sold a part of his stake in the company, Macquarie stated in a separate statement.

“AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power and related services,” Jon Gray, president and chief operating officer of Blackstone said in the statement.

Sydney-based AirTrunk is the largest data center platform in the Asia Pacific region, with substantial operations in Australia, Hong Kong, Japan, Malaysia and Singapore. The company which was founded in 2015 has committed over 800 megawatts of capacity to customers and owns land that can support the development of up to 1,000 megawatts across the region.

“This transaction evidences the strength of the AirTrunk platform in a strong performing sector as we capture the next wave of growth from cloud services and AI and support the energy transition in Asia Pacific,” Khuda said.

Before acquiring AirTrunk, Blackstone's data center portfolio included $55 billion in operational and under-construction facilities, plus a $70 billion pipeline of prospective projects. It has invested in U.S.-based data center operators, such as QTS, Coreweave and Digital Realty.