Digital Realty to Acquire Blackstone’s Stake in Virginia Data Centers for $3.5 Billion
June 30, 2026
Digital Realty to Acquire Blackstone’s Stake in Virginia Data Centers for $3.5 Billion
Digital Realty has agreed to acquire a larger ownership stake in three data centers located in Northern Virginia from asset manager Blackstone in a deal valued at $3.5 billion, combining cash and stock. The transaction, announced on Monday and expected to close on Tuesday, underscores the escalating demand for data center capacity driven by cloud computing and artificial intelligence.
Under the terms of the agreement, Digital Realty will pay $1.2 billion in cash and issue $2.3 billion in its own shares to funds managed by Blackstone. The three facilities are located in Manassas and Sterling, Virginia, a region widely recognized as the world’s largest data center market. The move strengthens Digital Realty’s foothold in this critical hub, where infrastructure needs have surged as enterprises and hyperscale cloud providers expand their digital operations.
Each of the two data centers in Manassas has a capacity of 96 megawatts, in which Digital Realty will acquire Blackstone’s 80 percent interest. The company will also purchase a 50 percent stake in a separate 96-megawatt facility in Sterling. The total asset value of the three data centers, including debt and planned capital expenditures, is approximately $7.8 billion, according to the companies.
Digital Realty Chief Financial Officer Matt Mercier noted that the transaction is expected to be accretive to core funds from operations per share in both 2027 and 2028, as development completes and rental income begins. Two of the facilities are projected to reach stabilization in the first half of 2027, with the third expected to stabilize in the first half of 2028.
Greg Wright, chief investment officer of Digital Realty, highlighted the longstanding partnership with Blackstone. “We have developed a strong partnership with Blackstone through the successful ongoing development of these assets, and we continue to work together across the remaining data center investments in our joint ventures in Northern Virginia, Paris and Frankfurt,” he said. “This transaction reflects the next phase of that relationship, allowing us to increase our ownership in a portfolio of fully leased, high-quality hyperscale assets.”
Shares of Digital Realty fell 2.4 percent in extended trading following the announcement. The deal highlights a broader trend of consolidation in the data center industry, as operators seek to secure greater control over prime assets in high-demand markets. With AI workloads and cloud adoption continuing to accelerate, ownership of large-scale, fully leased facilities in strategic locations like Northern Virginia is becoming increasingly valuable.
Source: channelnewsasia
