Overview
- Digital Realty agreed to pay $3.5 billion for Blackstone-affiliated interests in three newly built data centers, using $1.2 billion in cash and $2.3 billion in Digital Realty stock to acquire a blended 64% equity stake.
- The portfolio comprises three 96 MW facilities—two in Manassas and one in Sterling—that are 100% leased to three distinct investment-grade hyperscale customers under long-term leases.
- Two sites are forecast to stabilize in the first half of 2027 and the third in the first half of 2028, and the company expects the transaction to be accretive to Core FFO per share in 2027 and 2028 as development finishes and rents begin.
- Concurrent with the purchase, Blackstone affiliates priced an underwritten offering of 12,310,249 Digital Realty shares at $185.00 per share that are expected to be issued on closing and sold in a secondary offering that will not raise proceeds for Digital Realty.
- The deal strengthens Digital Realty’s presence in Northern Virginia, the largest U.S. data center market driven by cloud and AI demand, and keeps Blackstone in the partnership while shifting operational ownership and near-term revenue to Digital Realty.