Pranav Hotkar
Austin, Texas - June 30, 2026 - Digital Realty has agreed to acquire Blackstone's ownership interests in three hyperscale data centers in Northern Virginia in a USD 3.5 billion cash-and-stock transaction, increasing its control over one of the world's largest AI and cloud infrastructure portfolios as demand for high-capacity data centers continues to surge.
Under the agreement, Digital Realty will purchase Blackstone-affiliated funds' 80% interest in two 96 MW data centers in Manassas, Virginia, and a 50% interest in a third 96 MW facility in Sterling, Virginia. The transaction values the three campuses at approximately USD 7.8 billion, including assumed debt and the remaining capital required to complete ongoing development. The deal is expected to close immediately following customary closing procedures.
The three facilities, which together provide 288 MW of IT capacity, were originally developed through the companies' USD 7 billion hyperscale joint venture announced in late 2023. Digital Realty said all three campuses are fully leased to hyperscale customers, with two expected to stabilize during the first half of 2027 and the third reaching stabilization in the first half of 2028.
The acquisition strengthens Digital Realty's presence in Northern Virginia, widely regarded as the world's largest data center market. The region has become the epicenter of hyperscale cloud and AI infrastructure because of its dense fiber connectivity, abundant network interconnection, and proximity to major enterprise and government customers. Growing demand for AI training and inference workloads has further accelerated investment in high-density campuses across the market.
Digital Realty said the transaction is expected to be accretive to its Core Funds From Operations (Core FFO) per share in both 2027 and 2028 as development concludes and rental income begins. Chief Investment Officer Greg Wright said the deal represents the next phase of the company's relationship with Blackstone, while allowing Digital Realty to increase ownership of "fully leased, high-quality hyperscale assets." Despite the transaction, both companies will continue collaborating through their remaining joint ventures in Northern Virginia, Paris, and Frankfurt.
The acquisition reflects a broader trend across the AI infrastructure industry, where established data center operators are increasing ownership of strategic hyperscale assets instead of pursuing greenfield developments alone. With power availability, permitting timelines, and land becoming increasingly constrained, fully leased AI-ready campuses have become some of the most valuable assets in digital infrastructure portfolios. Investors have responded by directing billions of dollars toward hyperscale facilities capable of supporting next-generation cloud and AI deployments.
For Digital Realty, expanding its ownership in the Northern Virginia portfolio provides greater long-term exposure to one of the industry's strongest growth markets while reinforcing its position as a leading global provider of hyperscale and AI-ready data center infrastructure. The transaction also enables Blackstone to monetize a portion of its investment while maintaining its broader strategic partnership with Digital Realty across multiple international data center developments.
