Digital Realty, real estate investment trust (REIT), has agreed to acquire Blackstone’s stake in three fully leased data centers in Northern Virginia in a transaction valuing the assets at US$ 7.8 billion. The portfolio includes three data centers with a combined 288 MW of IT capacity, two in Manassas and one on Digital Realty’s Digital Dulles campus in Sterling. Each facility has 96 MW of IT capacity and is fully leased to three separate investment-grade hyperscale customers.
Under the agreement, Digital Realty will purchase Blackstone’s 80 percent interest in two 96 MW data centers in Manassas and Sterling Virginia. Digital Realty will acquire Blackstone’s blended 64 percent equity interest in the assets for US$ 3.5 billion. The consideration consists of US$ 1.2 billion in cash and US$ 2.3 billion in Digital Realty shares, based on the company’s closing share price on the New York Stock Exchange on June 29, 2026 as detailed in a press release.
Greg Wright, Chief Investment Officer, Digital Realty, said, “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.”
Matt Mercier, CFO, Digital Realty, said, “This transaction is expected to be accretive to Core FFO per share in each of 2027 and 2028, as development is completed and rents commence, We also expect it to be accretive to contractual organic rent growth and portfolio quality, given long term leases with premier hyperscale customers in newly constructed assets, in the largest and most sought-after data center market.”
Two of the data centers are expected to reach stabilization in the first half of 2027, with the third expected to stabilize in the first half of 2028. The portfolio is backed by 15-year leases with customers that have a blended average AA- credit rating and include annual rent escalators of 3.6 percent.