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Should Blue Owl Capital's (OWL) $4B AI Data Center Venture Prompt a Fresh Look at Its Digital Ambitions?

Simply Wall St · 09/03/2025 11:23
  • Newmark Group, Inc. announced in August 2025 that it had advised Blue Owl Capital, Chirisa Technology Parks, and Machine Investment Group in a US$4 billion joint venture to develop an AI-focused data center campus in Lancaster, Pennsylvania, anchored by a long-term lease with a major cloud computing company.
  • This move expands Blue Owl's digital infrastructure partnership with Chirisa to US$20 billion across Pennsylvania and Virginia, and positions the Lancaster campus as a key Mid-Atlantic hub for AI workloads.
  • We'll examine how Blue Owl Capital's expanding role in AI data center development could affect its digital infrastructure investment narrative.

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Blue Owl Capital Investment Narrative Recap

To invest in Blue Owl Capital, you need conviction in the ongoing transformation of digital infrastructure and alternative asset management, especially as growth in AI and cloud computing drives demand for scalable data centers. The US$4 billion Lancaster joint venture builds on Blue Owl’s push into AI infrastructure, but heightens attention on short-term execution and integration challenges, a known risk for a company expanding rapidly through new partnerships and acquisitions.

Among recent developments, Blue Owl’s second-phase commitment to its US$15 billion Abilene, Texas AI data center venture mirrored its Lancaster announcement, reflecting a clear, ongoing focus on institutional-scale digital infrastructure projects. Like Lancaster, the Abilene project supports the company’s long-term strategy to capture recurring fees from permanent capital vehicles, which has been a crucial earnings catalyst even as sector competition intensifies.

Yet, investors should be especially alert to the possibility that, unlike fundraising momentum, risks from complex integrations may...

Read the full narrative on Blue Owl Capital (it's free!)

Blue Owl Capital is expected to reach $4.2 billion in revenue and $5.1 billion in earnings by 2028. This projection is based on an anticipated 17.5% annual revenue growth rate and an earnings increase of approximately $5.0 billion from the current earnings of $75.4 million.

Uncover how Blue Owl Capital's forecasts yield a $23.92 fair value, a 30% upside to its current price.

Exploring Other Perspectives

OWL Community Fair Values as at Sep 2025
OWL Community Fair Values as at Sep 2025

Four members of the Simply Wall St Community placed Blue Owl’s fair value between US$0.61 and US$28 per share, highlighting sharp disagreements about growth potential. Keep in mind, these views are forming as the company’s rapid digital infrastructure expansion presents both major revenue upside and new integration risks.

Explore 4 other fair value estimates on Blue Owl Capital - why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.