Key Takeaways
- • Digital Realty acquired Blackstone's blended 64% equity stake in three Northern Virginia hyperscale data centers for $3.5 billion, with the transaction structured as $1.2 billion in cash and $2.3 billion in stock.
- • The three fully-leased facilities are valued at a gross enterprise value of $7.8 billion and comprise 80% ownership interests in two 96 MW data centers in Manassas, Virginia, and a 50% ownership interest in one 96 MW data center in the region.
- • All three data centers are fully leased to hyperscalers, providing stable, contracted revenue streams and reducing leasing risk for Digital Realty's acquisition.
- • The transaction is expected to close on June 30, 2026 (Tuesday), marking a significant consolidation move in the Northern Virginia data center market, a critical hub for cloud and AI infrastructure.
- • Blackstone's exit reflects a strategic capital redeployment from this hyperscale data center portfolio, converting illiquid real assets into liquid proceeds while Digital Realty expands its operational footprint in a high-demand region.
Summary
Digital Realty has agreed to acquire Blackstone's equity interests in three Northern Virginia hyperscale data centers for $3.5 billion, expanding its presence in one of the nation's most strategically important data center markets. The deal, expected to close on June 30, 2026, values the three fully-leased facilities at a gross enterprise value of $7.8 billion.
The transaction structure provides insight into both parties' strategic positioning. Digital Realty is paying $1.2 billion in cash and $2.3 billion in equity, acquiring Blackstone's blended 64% ownership interest. The asset composition includes 80% ownership stakes in two 96 MW data centers located in Manassas, Virginia, and a 50% ownership interest in a third 96 MW facility also in Northern Virginia. The fact that all three facilities are fully leased to hyperscalers—major cloud and AI infrastructure operators—underscores the defensive quality of the assets and their appeal to an institutional buyer like Digital Realty.
For Blackstone, the transaction represents a strategic exit from part of its data center portfolio, converting illiquid real estate holdings into immediate liquidity. The $3.5 billion proceeds allow the alternative asset manager to redeploy capital toward other investment opportunities. For Digital Realty, the acquisition strengthens its operational footprint in Northern Virginia, a region experiencing sustained demand driven by proximity to Washington, D.C., major technology companies, and critical AI and cloud computing infrastructure.
The deal reflects the robust institutional appetite for stabilized, income-producing data center assets. With long-term leases to hyperscalers providing predictable cash flows and minimal vacancy risk, these facilities represent the type of essential infrastructure assets that institutional investors and REITs continue to prioritize in an era of accelerating cloud adoption and artificial intelligence deployment.
The transaction structure provides insight into both parties' strategic positioning. Digital Realty is paying $1.2 billion in cash and $2.3 billion in equity, acquiring Blackstone's blended 64% ownership interest. The asset composition includes 80% ownership stakes in two 96 MW data centers located in Manassas, Virginia, and a 50% ownership interest in a third 96 MW facility also in Northern Virginia. The fact that all three facilities are fully leased to hyperscalers—major cloud and AI infrastructure operators—underscores the defensive quality of the assets and their appeal to an institutional buyer like Digital Realty.
For Blackstone, the transaction represents a strategic exit from part of its data center portfolio, converting illiquid real estate holdings into immediate liquidity. The $3.5 billion proceeds allow the alternative asset manager to redeploy capital toward other investment opportunities. For Digital Realty, the acquisition strengthens its operational footprint in Northern Virginia, a region experiencing sustained demand driven by proximity to Washington, D.C., major technology companies, and critical AI and cloud computing infrastructure.
The deal reflects the robust institutional appetite for stabilized, income-producing data center assets. With long-term leases to hyperscalers providing predictable cash flows and minimal vacancy risk, these facilities represent the type of essential infrastructure assets that institutional investors and REITs continue to prioritize in an era of accelerating cloud adoption and artificial intelligence deployment.
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