Digital Realty to Buy Blackstone Stake in Three Virginia Data Centers for $7.8 Billion
The mixed-cash-and-stock deal expands Digital Realty's ownership of fully leased hyperscale assets and deepens its private-capital partnership with Blackstone.
Digital Realty (DLR) agreed to acquire Blackstone's interest in three hyperscale data centers in Northern Virginia for $7.8 billion in gross value, the company said. The consideration comprises $1.2 billion in cash and $2.3 billion in Digital Realty common shares, with the balance reflecting assumed and related financing. The transaction is expected to close on June 30, 2026.
The deal allows Digital Realty to consolidate ownership of a portfolio of fully leased, high-quality hyperscale facilities in the world's densest data-center corridor. "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," said Greg Wright, Digital Realty's Chief Investment Officer.
Northern Virginia remains the epicenter of cloud and artificial-intelligence infrastructure demand, and the three facilities sit at the heart of that market. By moving from a joint-venture stake to full control, Digital Realty gains operational flexibility and the ability to capture the full economics of assets that are already generating revenue from hyperscale tenants.
The acquisition is the latest in a string of capital deployments by Digital Realty aimed at scaling both its owned portfolio and its third-party capital partnerships. Earlier in June, the company announced a two-gigawatt development site near Kansas City, an increased ownership stake in Teraco — Africa's leading data-center platform — and the acquisition of Columbia Capital, a digital-infrastructure investment firm. Together, those transactions were valued at roughly $1.6 billion and funded principally through the issuance of 6.3 million shares at a weighted-average price of $197.54.
Digital Realty and Blackstone have been partners in hyperscale development since at least 2024, when they closed the second phase of a $7 billion joint venture covering campuses in Frankfurt and Northern Virginia. The new buyout unwinds part of that structure, giving Digital Realty outright ownership of the Virginia assets while the broader partnership continues.
The transaction is subject to customary closing conditions. Digital Realty said the deal supports its balance-sheet discipline while positioning the company to capitalize on accelerating demand for AI-ready data-center capacity across its global platform.