U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member probes KKR BlackRock Brookfield and Blackstone over data center investments

Elizabeth Warren, the ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, sent letters to KKR, BlackRock, Brookfield Infrastructure Partners and Blackstone seeking information on their growing role in data center development and operations. The inquiry focuses on whether private equity-backed expansion is contributing to higher household utility costs and worsening environmental and financial risks tied to the sector. The letters cite a sharp rise in private equity funding for data centers, with investment reaching USD 45.70 billion in 2025 and projected financing of USD 350 billion by 2028. Warren linked that buildout to rising power demand, noting a study showing U.S. electricity use attributed to data centers increased from 1.9% to 4.4% between 2018 and 2023, while average electricity costs could rise by 6% to 29% by 2030 and by as much as 57% in Virginia, primarily due to data center expansion. The letters also point to the firms' major holdings in the sector, including KKR and Global Infrastructure Partners' USD 15 billion acquisition of CyrusOne, BlackRock's USD 12.5 billion acquisition of Global Infrastructure Partners, Brookfield's USD 775 million merger of Cyxtera and Evoque into Centersquare, and Blackstone's acquisition of QTS for at least USD 10 billion. Warren asked the firms to provide details by June 27 on their investments and ownership across the data center supply chain, the steps they take to mitigate risks associated with owning data centers, and how they ensure the public is not exploited by those investments.