AUSTIN, Texas — Digital Realty’s agreement to acquire a larger stake in three Northern Virginia data centers from Blackstone-managed funds has drawn investor attention, with shares of the data center operator falling in extended trading after the companies announced the $3.5 billion transaction.
The deal will give Digital Realty a greater ownership position in assets valued at $7.8 billion, including debt and planned capital spending, as the company expands its exposure to hyperscale data centers amid rising demand for computing capacity from cloud services and artificial intelligence applications.
Under the agreement, Digital Realty will purchase Blackstone’s blended 64% equity interest in the portfolio for $1.2 billion in cash and $2.3 billion in Digital Realty shares, according to the companies. The assets include two 96-megawatt facilities in Manassas, Virginia, and a 96-megawatt facility in Sterling, Virginia. The three sites have a combined 288 megawatts of IT capacity and are fully leased to hyperscale customers, the companies said.
Digital Realty said the transaction is expected to increase its ownership of newly developed hyperscale infrastructure in Northern Virginia, one of the largest data center markets globally. The company said two of the facilities are expected to stabilize in the first half of 2027, with the third expected 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 Funds From Operations per share in 2027 and 2028 as development is completed and leases begin generating revenue.
Greg Wright, chief investment officer of Digital Realty, said the purchase represented the next phase of the company’s relationship with Blackstone and would allow Digital Realty to increase ownership of “fully leased, high quality hyperscale assets.”
Blackstone said the transaction reflected continued demand for digital infrastructure. Mike Forman, global head of digital infrastructure for Blackstone Real Estate, and Greg Blank, global head of digital infrastructure for Blackstone Infrastructure, said the firms remained committed to their partnership with Digital Realty.
The announcement comes as investors continue to assess large-scale investments in data center infrastructure linked to artificial intelligence growth. Blackstone and Digital Realty previously formed a hyperscale data center development partnership focused on expanding capacity across North America and Europe.
Digital Realty’s shares declined about 2.4% in after-hours trading following the announcement, according to market data cited in reports. The companies said the transaction was expected to close on June 30, 2026, subject to customary closing conditions.
