I’ve found a fun new rabbit hole. Data centers.
(someone, pull me out 🐰)
If you want to invest in actual physical data centers, Blue Owl has a vehicle for you.
It’s called Blue Owl Digital Infrastructure Trust, or ODIT. It’s a perpetual-life, non-traded REIT (~$2 billion of NAV), available to accredited investors.
The pitch is easy to understand. Per its Q2 10-Q, as of June 30, 2026:
12 data centers totaling 235 MW
99.7% leased
Per the same filing, Class I shares returned 5.93% in the first half of 2026, and 12.24% annualized since inception.
Not bad, eh?
(contrary to rumors out there, I’m decidedly not Canadian, btw).
So here’s what we’ll cover today:
The assets. Data centers are the new sexy thing, but at the end of the day, a data center is a box with contractual cash flows. We’ll cover the unglamorous stuff: cap rates, yield, rent increases, NNN vs gross leases.
GAAP losses vs. NAV increases. Your favorite part: accounting nuances. (There ought to be some “GAAP and NAV walk into a bar” jokes).
Back to that ~6% YTD return: over the same six months, ODIT reported a GAAP net loss of $73.3 million.
Both numbers come from the same filing, and both are accurate. But only one of them sets the price you buy and redeem at, and the fees you pay. That’s NAV.
So where did the 6% come from? Let’s follow the money, starting with how the portfolio got here.
Disclosure: This case study is provided for educational and informational purposes only and should not be construed as investment, legal, tax, or financial advice. The views expressed are solely those of the author. All examples are illustrative in nature and not guarantees of future outcomes. Readers should conduct their own independent research and consult with qualified professionals before making any investment or financial decisions.
Where the Portfolio Came From
Before we get to the returns, we need to take a look at what ODIT actually bought.
Per the 10-K, ODIT’s first 11 buildings arrived as a package on December 1, 2025, from the BODI I Funds, which are managed by an affiliate of ODIT’s own adviser.
The transaction was about $3.29 billion gross. ODIT assumed $1.8 billion of debt, paid $1.48 billion in cash from its day-one offering, and issued about $42 million in shares and OP units, net of working-capital adjustments.
In other words, new money entering a Blue Owl evergreen vehicle bought assets from an existing Blue Owl vehicle.
Importantly, each side obtained a fairness opinion. BODI I’s advisory committee and ODIT’s board, including its independent trustees, approved the deal.
Many of these buildings predate ODIT by years. Per industry press, IPI Partners bought the Infomart and T5 sites in 2018–2019 and rebranded them as STACK Infrastructure. Blue Owl acquired IPI’s business in January 2025. Eight of the 11 legacy buildings were built by others between 2006 and 2015.
These weren’t shiny new buildings, and the leases they came with tell an interesting story.