AcquisitionsJun 29, 2026, 04:06 PM
Digital Realty Acquires $7.8B Data Center Stake from Blackstone
AI Summary
Digital Realty Trust, Inc. announced an agreement to purchase a stake in three fully leased data centers from Blackstone-affiliated funds for a gross value of $7.8 billion. The total consideration paid to Blackstone for their 64% equity interest will be $3.5 billion, consisting of $1.2 billion in cash and $2.3 billion in Digital Realty shares. This acquisition of 288 megawatts of IT capacity in Northern Virginia is expected to be accretive to Core FFO per share in 2027 and 2028, enhancing the company's growth and portfolio quality.
Key Highlights
- Digital Realty to acquire a stake in three data centers from Blackstone for $7.8 billion gross value.
- Total consideration to Blackstone is $3.5 billion, comprising $1.2 billion cash and $2.3 billion in shares.
- The data centers have a total IT capacity of 288 megawatts in Northern Virginia.
- The transaction reflects an expected initial stabilized capitalization rate of over 6.5%.
- Assets are 100% leased to three hyperscale customers with 15-year leases and 3.6% annual rent escalators.
- Expected to be accretive to Core FFO per share in 2027 and 2028.
- Two data centers expected to stabilize in H1 2027, the third in H1 2028.
- Digital Realty will acquire Blackstone's 80% interest in two Manassas data centers and 50% in one Sterling data center.
Price Impact
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