Key facts
- Digital Realty is acquiring a majority stake in three data centers.
- The data centers are located in Northern Virginia.
- The seller is Blackstone-managed funds.
- The total valuation of the assets is $7.8 billion.
- Digital Realty will pay $3.5 billion in cash and stock.
- Digital Realty is acquiring Blackstone's 64% equity interest.
- The transaction is expected to be accretive to Digital Realty's Core FFO per share.
Digital Realty has announced its agreement to acquire a majority stake in three data centers located in Northern Virginia from funds managed by Blackstone. The total valuation for these assets stands at $7.8 billion. As part of the transaction, Digital Realty will pay $3.5 billion, comprising both cash and stock, to acquire Blackstone's 64% equity interest in the three facilities. This strategic move is expected to be accretive to Digital Realty's Core FFO per share, suggesting a positive financial outcome for the company. The acquisition reinforces Digital Realty's presence in Northern Virginia, a significant market for data center operations and digital infrastructure. The deal highlights ongoing investment in the data center sector, driven by increasing demand for digital services and cloud computing. The specific details of the cash and stock components of the $3.5 billion payment will be further elaborated upon as the transaction progresses. This acquisition represents a significant expansion of Digital Realty's portfolio and its commitment to serving critical digital infrastructure needs.