Blackstone Inc. has secured a first-lien term loan from UBS Group AG to fund its acquisition of a controlling stake in Flow Control Holdings, a supplier of components for data center liquid cooling systems. The private equity firm agreed to buy the stake from Audax Private Equity on Sept. 10, with Audax retaining a minority interest. Flow Control serves data centers as well as the food, beverage, and pharmaceutical sectors. The loan terms and size were not disclosed, but the financing is expected to launch in coming weeks with the deal closing by year-end.

Debt financing for data center-related transactions has surged past $350 billion in US-dollar issuance this year, driven by hyperscalers like Amazon.com Inc. and Alphabet Inc. racing to build AI infrastructure. The Blackstone transaction adds to a growing pipeline of leveraged loan M&A financings, with roughly $92 billion in pending US deals according to JPMorgan data. The floating-rate asset class has seen renewed activity following a summer slowdown.

Representatives for UBS declined to comment, while Blackstone and Flow Control did not immediately respond to requests for comment.