Why it matters
The strategic read
Adds another hard asset-financing receipt inside the world's tightest AI and cloud data-center corridor. Digital Realty is not buying speculative land: it is increasing ownership in 288 MW of new hyperscale capacity already fully leased to investment-grade customers on long 15-year leases. The deal shows mature Northern Virginia shells, leases and development capital being marked at multi-billion-dollar value as AI-era cloud demand pulls public REIT balance sheets and private infrastructure capital into the same capacity stack.
Source-supported terms
What was disclosed
- 01
Digital Realty and Blackstone announced on June 29, 2026 that Digital Realty agreed to purchase from Blackstone-affiliated funds a stake in three fully leased Northern Virginia data centers.
- 02
The portfolio contains 288 MW of total IT capacity across two 96 MW data centers in Manassas, Virginia and one data center on Digital Realty's Digital Dulles campus in Sterling, Virginia.
- 03
Digital Realty agreed to purchase Blackstone's 80% interest in the two Manassas data centers and Blackstone's 50% interest in the Sterling data center.
- 04
The transaction values the three-asset portfolio at $7.8B gross, including debt and remaining capex.
- 05
Consideration to Blackstone for its blended 64% equity interest is $3.5B, consisting of $1.2B cash and $2.3B of Digital Realty common stock based on the June 29, 2026 closing price.
- 06
Digital Realty said the transaction increases its exposure to new capacity in the world's largest data-center market.
- 07
The assets are fully leased to investment-grade hyperscale customers under 15-year leases.
- 08
Digital Realty cited a blended AA- customer credit rating and 3.6% annual rent escalators.
- 09
Two assets are expected to stabilize in the first half of 2027 and one in the first half of 2028.
- 10
Digital Realty framed the assets as high-quality hyperscale capacity that extends its runway for growth and pipeline of product for continued hyperscale demand.
- 11
Blackstone said demand for data centers is being powered by growth in AI and cloud computing.
- 12
The Deal Room treats the announcement as an acquisition and financing receipt for already-leased hyperscale capacity rather than a new customer contract or construction-start event.
Disclosure boundary
What is known—and what is not
Primary Digital Realty and Blackstone press releases. Public materials disclose the named parties, three Northern Virginia data centers, Manassas and Sterling geography, 288 MW total IT capacity, two 96 MW Manassas assets, Digital Dulles Sterling asset, $7.8B gross portfolio value, $3.5B consideration to Blackstone, cash/share mix, 80% and 50% interests being acquired, fully leased status, investment-grade hyperscale customer profile, blended AA- credit rating, 15-year lease term, 3.6% annual rent escalators and expected stabilization windows. Public materials do not disclose customer names, lease economics beyond escalators, tenant remedies, power procurement, utility service terms, debt details, remaining capex by asset, exact buildings / addresses, cooling design, server or GPU allocation, development-management terms, closing conditions, governance rights or full purchase agreement exhibits.