Digital Realty is purchasing Blackstone's majority stakes in three fully leased data centers located in Northern Virginia for $3.5 billion. The deal involves $1.2 billion in cash and $2.3 billion in Digital Realty stock. This acquisition will give Digital Realty 100% control over facilities that offer a combined 288 megawatts of IT capacity. These data centers were originally developed through a joint venture between the two companies.
The specific assets being acquired include Blackstone's 80% interest in two 96 MW data centers in Manassas, Virginia, and a 50% interest in one 96 MW data center in Sterling, Virginia. The total value of these assets, including debt and capital expenditures for ongoing development, is approximately $7.8 billion. The facilities are fully leased to three distinct investment-grade hyperscale customers under leases averaging 15 years, with an average annual rent escalator of 3.6%. The transaction is expected to close on June 30, 2026.
Industry analysts view this move as a strategic expansion for Digital Realty, capitalizing on the increasing demand driven by artificial intelligence. Steven Dickens, CEO and principal analyst at HyperFrame Research, noted that this increases Digital Realty's scale and footprint, crucial for AI infrastructure. John Dinsdale of Synergy Research Group added that such buybacks of joint venture assets are common for large data center operators seeking greater control and optimal capital allocation.
