Investing.com -- Blackstone Digital Infrastructure Trust drew mixed reviews from Wall Street on Monday as analysts initiated coverage of the newly listed data center REIT, with RBC Capital Markets citing strong growth potential from AI-driven infrastructure demand while BMO Capital Markets urged caution over execution and valuation risks.

RBC started coverage with an Outperform rating and a $24 price target, arguing that the Blackstone-backed company offers investors a differentiated way to gain exposure to stabilized hyperscale data centers leased to investment-grade tenants under long-term triple-net contracts. The brokerage highlighted Blackstone's extensive relationships with hyperscalers and a near-term acquisition pipeline estimated at $25 billion as key growth drivers.

Blackstone Digital Infrastructure Trust, which completed its IPO in May and raised about $2 billion, currently owns no assets and plans to deploy proceeds into newly constructed, stabilized data centers leased to major cloud and AI companies including Amazon, Microsoft, Meta and Alphabet. The company is targeting acquisition cap rates of roughly 5.75% to 7.0% and expects to invest the IPO proceeds within several quarters.

BMO initiated coverage with a Market Perform rating and a $23 price target, saying the long-term outlook is supported by strong data center demand, premium tenant quality and contractual rent escalators, but noting that the company's success depends heavily on timely capital deployment and maintaining a favorable cost of capital. The brokerage also pointed to concerns around the externally managed structure, blind-pool status and the stock's premium valuation relative to net-lease peers.

Both firms highlighted robust industry fundamentals driven by accelerating AI investment and tight data center supply. RBC said BXDC could benefit from structural scarcity in hyperscale facilities, while BMO estimated hyperscaler capital spending will exceed $750 billion in 2026 and top $2 trillion cumulatively between 2025 and 2027, supporting long-term demand for digital infrastructure assets.