By Pritam Biswas
(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.
"Most of 2025's hottest IPOs are way off highs and I'd guess a SPAC was the fastest way to tap into a hot theme for the company without having to see if a subscale operator can hold the interest of investors while the market is feeling toppy," said Benjamin Kwasnick, founder of SPAC Research.
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.
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.
(Reporting by Pritam Biswas in Bengaluru; Editing by Anil D'Silva and Tasim Zahid)
