Digital Realty Acquires Blackstone Data Center Stakes for $3.5 Billion

The acquisition encompasses 80% stakes in two Manassas-based data centers alongside a 50% interest in a facility at the Digital Dulles campus in Sterling. Each site provides 96 megawatts of capacity, adding substantial scale to Digital Realty's regional footprint. To fund the purchase, the company will deploy $1.2 billion in cash and $2.3 billion in stock, based on Monday's closing price.

Chief Financial Officer Matt Mercier expects the investment to provide a boost to core funds from operations by 2027 and 2028, while strengthening contractual organic rent growth. Following the announcement, Digital Realty disclosed plans for a $2.35 billion secondary public offering of shares currently held by Blackstone affiliates, pending the deal's completion. Despite the strategic expansion, investor reaction remained muted, with shares slipping 1.9% to $187.00 in after-hours trading.