Digital Realty is acquiring a stake in three Virginia data centers from investment giant Blackstone.
The US colo firm and Blackstone this week announced that Digital Realty has agreed to purchase a stake in three fully leased data centers in Northern Virginia totaling 288MW of total IT capacity from Blackstone-affiliated funds managed by Real Estate, Infrastructure and Tactical Opportunities.
Total consideration paid to Blackstone for its blended 64 percent equity interest in the assets will be $3.5 billion, including $1.2bn of cash and $2.3bn in shares of Digital Realty.
The portfolio comprises two data centers in Manassas and one on the Digital Dulles campus in Sterling, each with 96MW of IT capacity, that are 100 percent leased to three seperate investment-grade hyperscale customers.
The purchase is expected to be completed this week.
“We have developed a strong partnership with Blackstone through the successful ongoing development of these assets, and we continue to work together across the remaining data center investments in our joint ventures in Northern Virginia, Paris and Frankfurt,” said Greg Wright, chief investment officer of Digital Realty. “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.”
Digital Realty agreed to purchase Blackstone’s 80 percent interest in two 96MW data centers in Manassas, Virginia and a 50 percent interest in one 96MW data center in Sterling, Virginia, via the acquisition of the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures.
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. The sites are supported by 15-year leases with a blended average AA- customer credit rating and 3.6 percent annual rent escalators, that are expected to enhance the company’s growth and visibility.
Mike Forman, global head of digital infrastructure for Blackstone Real Estate and Greg Blank, global head of digital infrastructure for Blackstone Infrastructure, added: “We are thrilled with this transaction and the early success of our joint venture with Digital Realty. The Digital Realty team has been exceptional to work with, and we look forward to our continued partnership. The demand for digital infrastructure is even stronger today than when we established this joint venture in 2023, and we have deep conviction in the opportunity ahead.”