Digital Realty is acquiring a stake in three Virginia data centers from global alternative asset manager Blackstone.
Digital Realty has acquired an ownership interest in three hyperscale data centers in Northern Virginia for approximately $3.5 billion from Blackstone-affiliated funds. Total consideration includes $1.2 billion in cash and $2.3 billion in Digital Realty shares. The portfolio carries a gross value of $7.8 billion, with an expected initial stabilized cap rate exceeding 6.5 percent.
The properties were originally part of a $7 billion joint venture created by Digital Realty and Blackstone in late 2023 to develop 10 hyperscale data centers across Northern Virginia, Frankfurt and Paris.
“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 that extend our runway for growth and pipeline of product for the continued expansion of our strategic private capital platform,” said Greg Wright, Chief Investment Officer of Digital Realty.
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