(Reuters) -Data center operator Blockfusion said on Wednesday it would list in the United States through a merger with blank-check firm Blue Acquisition Corp in a deal valued at $450 million, as investor appetite for the sector continues to surge.
Special purpose acquisition companies have re-emerged this year after a prolonged lull, with prominent investors and financial firms once again embracing the vehicles as an alternative path to access public markets.
A SPAC is a shell company that raises capital through an initial public offering and later merges with a private business, offering it a shortcut to the public markets without a conventional IPO.
New York-headquartered Blockfusion, designs, builds and operates infrastructure for artificial intelligence, enterprise and colocation customers.
Data center infrastructure companies are seeing heightened demand in 2025, fueled by the rapid growth of digital services, wider adoption of generative artificial intelligence and machine learning, technologies that consume massive computing resources.
Construction spending on U.S. data centers climbed to a seasonally adjusted annual rate of $40 billion in June, marking an all-time high as technology giants ramp up investment in artificial intelligence infrastructure, according to a Bank of America report.
“It represents a compelling opportunity to develop and bring to the public markets a strategically positioned platform transitioning into a high-performance, next-generation AI data center,” Blue Acquisition CEO Ketan Seth said.
The company expects to generate as much as $128 million in gross revenue and $75 million EBITDA by 2028 after a successful transition.
Following the deal closure, which is expected in the first half of 2026, the combined company will operate as Blockfusion Data Centers Inc and is expected to trade on the Nasdaq.
Winston & Strawn LLP and ING Financial Markets LLC are serving as legal and financial advisers to Blockfusion.
(Reporting by Pritam Biswas in Bengaluru; Editing by Anil D’Silva and Tasim Zahid)
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