Key facts
- Digital Realty is acquiring a majority stake in three Northern Virginia data centers from Blackstone.
- The deal values the data center assets at $7.8 billion.
- Digital Realty will pay $3.5 billion for Blackstone's 64% equity interest, using $1.2 billion cash and $2.3 billion in DLR shares.
- The portfolio includes 288 MW of IT capacity across two Manassas and one Sterling data center.
- The assets are fully leased to three investment-grade hyperscale customers on 15-year contracts with 3.6% annual rent escalators.
- The transaction is expected to close on June 30, 2026, and boost Digital Realty's Core FFO per share.
Digital Realty has agreed to purchase a majority stake in three fully leased data centers located in Northern Virginia from funds managed by Blackstone. The transaction values the assets at $7.8 billion, with Digital Realty paying $3.5 billion for Blackstone's 64% equity interest. This consideration includes $1.2 billion in cash and $2.3 billion in Digital Realty shares, based on the company's stock price on June 29, 2026.
The portfolio consists of two data centers in Manassas and one on the Digital Dulles campus in Sterling, each with 96 megawatts of IT capacity, totaling 288 megawatts. These facilities are 100% leased to three distinct investment-grade hyperscale customers under 15-year contracts, featuring 3.6% annual rent escalators. The acquisition is expected to increase Digital Realty's exposure to new capacity in a major data center market.
Digital Realty anticipates the deal, expected to close on June 30, 2026, will be accretive to its Core FFO per share in 2027 and 2028 as the development of the data centers is completed and rents commence. The company highlighted its ongoing partnership with Blackstone on other data center investments and expressed confidence in the strategic value of this transaction for future growth.