Blackstone shares jumped 2.7% on July 3 after regulators demanded an expanded environmental review for its planned Virginia AI data center, delaying the project's commissioning beyond 2026. The hold-up threatens to push back lease revenue and could impact valuation of the firm's capital commitment to the build-out.
On July 3, local regulators in Virginia flagged planning documents for Blackstone's proposed AI-focused data center campus, requiring an expanded environmental review and halting permit approvals. The demand reflects concerns over site impact and necessitates further assessments before construction can proceed.
The additional review pushes the project's commissioning date beyond its original late-2026 target, forcing Blackstone to revise construction schedules and tenant onboarding plans. Delays in ground-breaking and infrastructure deployment could ripple through the build-out's phased development.
This setback threatens to defer anticipated lease revenue streams tied to the campus and may prompt investors to reassess the valuation of the related capital commitment. Prolonged approval timelines could increase holding costs and influence discount rates applied to the project’s projected returns.
