Digital Realty to buy Blackstone's stake in 3 Virginia data centers

Digital Realty (NYSE: DLR) has agreed to purchase Blackstone Inc.'s (NYSE: BX) equity interest in three Northern Virginia data centers for a total consideration of $3.5 billion, according to a press release issued by both companies.

The three facilities, each with 96 megawatts of IT capacity, comprise two data centers in Manassas and one in Sterling, Virginia. The portfolio totals 288 megawatts and is 100% leased to three investment-grade hyperscale customers. The gross value of the transaction is $7.8 billion, reflecting an expected initial stabilized capitalization rate of over 6.5%.

Digital Realty is acquiring Blackstone's 80% interest in the two Manassas data centers and a 50% interest in the Sterling facility. The blended equity interest being acquired is 64%. Total consideration consists of $1.2 billion in cash and $2.3 billion in Digital Realty shares, priced at the last reported sale price on the New York Stock Exchange on June 29, 2026.

The leases carry 15-year terms with a blended average customer credit rating of AA- and annual rent escalators of 3.6%. Two of the data centers are expected to stabilize in the first half of 2027, with the third anticipated to stabilize in the first half of 2028.

Digital Realty Chief Financial Officer Matt Mercier said the transaction "is expected to be accretive to Core FFO per share in each of 2027 and 2028, as development is completed and rents commence."

The purchase is expected to close on June 30, 2026, subject to customary closing conditions. Digital Realty and Blackstone maintain additional joint ventures in Northern Virginia, Paris, and Frankfurt.

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