Digital Realty expands Northern Virginia presence with USD 7.8 billion data center majority stake acquisition from Blackstone

Digital Realty has agreed to acquire a 64 percent controlling equity interest in three premium, fully leased data centers in Northern Virginia from Blackstone-managed funds in a transaction valuing the portfolio at USD 7.8 billion.

According to official corporate disclosures, Digital Realty has finalized an agreement to purchase a majority equity stake in three operational data centers located in Northern Virginia from funds managed by Blackstone. The transaction values the fully leased data center portfolio at an aggregate asset valuation of USD 7.8 billion.

Digital Realty will secure a blended 64 percent controlling equity interest for a total consideration of USD 3.5 billion, comprising USD 1.2 billion in cash reserves and USD 2.3 billion in newly issued common stock. Digital Realty is a major global real estate investment trust that owns, operates, and invests in carrier-neutral data centers, colocation facilities, and cloud-interconnection infrastructure. This strategic asset reallocation directly fortifies Digital Realty's market position within Northern Virginia, which remains the premier global hub for digital infrastructure.

The consolidation comes amid an unprecedented wave of demand for high-density computing capacity driven by hyperscale cloud service providers and the rapid commercialization of artificial intelligence platforms.

For institutional investors and technology sector analysts, this multi-billion-dollar deal illustrates a critical trend of strategic alignment between data center operators and private equity giants to optimize capital deployment. By leveraging stock and cash components to absorb stable, cash-flowing assets, Digital Realty expands its capacity footprints in high-barrier-to-entry zones where localized land shortages and power grid constraints make greenfield development increasingly difficult for competing enterprises.