Digital Realty has agreed to acquire Blackstone’s equity interests in three fully leased data centres in Northern Virginia, at a gross portfolio value of $7.8bn.
The deal between Digital Realty and Blackstone-affiliated funds managed by Real Estate, Infrastructure and Tactical Opportunities includes facilities with a combined IT capacity of 288MW.
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Completion is anticipated on 30 June 2026, subject to customary closing conditions.
Blackstone’s blended 64% equity interest in these data centres totals $3.5bn, made up of $1.2bn in cash and $2.3bn in Digital Realty shares, with the share value based on Digital Realty’s closing price on the New York Stock Exchange.
The portfolio consists of two data centres in Manassas and one located on the Digital Dulles campus in Sterling, each offering 96MW of IT capacity and fully leased to three separate investment grade hyperscale customers.
Digital Realty is purchasing an 80% interest in the two Manassas data centres and a 50% stake in the Sterling facility.
The $7.8bn value for the portfolio reflects all shares, including assumed debt and remaining capital expenditure needed to complete ongoing development.
It is anticipated that two of the data centres will become operational in the first half of 2027, with the third expected to become operational in the first half of 2028.
The deal will enhance Digital Realty’s exposure in Northern Virginia, said to be the world’s largest data centre market.
The facilities are supported by 15-year leases, a blended average customer credit rating of AA-, and 3.6% annual rent increases.
Digital Realty chief financial officer Matt Mercier said: “This transaction is expected to be accretive to Core FFO per share in each of 2027 and 2028, as development is completed and rents commence.
“We also expect it to be accretive to contractual organic rent growth and portfolio quality, given long term leases with premier hyperscale customers in newly constructed assets, in the largest and most sought-after data centre market.
“We believe that our execution to date and the recently announced strategic transactions, position Digital Realty to extend its growth trajectory.”
Digital Realty earlier announced a series of transactions aimed at increasing its data centre development capacity and strengthening its global footprint.
