Digital Realty buys majority stake in Northern Virginia data centers for $7.8 billion
Digital Realty is paying $3.5 billion for a 64% stake in three leased Northern Virginia data centers, a sign AI-driven demand is still rewarding power-rich capacity.
Digital Realty agreed Monday to buy Blackstone-affiliated funds’ blended 64% equity interest in three fully leased data centers in Northern Virginia, valuing the portfolio at $7.8 billion. The deal gives Digital Realty immediate control of 288 megawatts of IT capacity in Northern Virginia, where hyperscalers are competing for power, cooling and connectivity.
The company will pay $3.5 billion for the stake, including $1.2 billion in cash and $2.3 billion in Digital Realty shares priced off the company’s June 29 closing price on the New York Stock Exchange. The portfolio includes two 96-megawatt facilities in Manassas and a third 96-megawatt center on Digital Realty’s Dulles campus in Sterling, Virginia. All three properties are 100% leased to three investment-grade hyperscale customers, a structure that gives the buyer contracted income rather than development risk.
The transaction is expected to close June 30, subject to customary conditions. Blackstone put the assets at an expected initial stabilized capitalization rate of more than 6.5%, with two of the centers expected to stabilize in the first half of 2027 and the third in the first half of 2028.
The sale also extends a partnership that began in December 2023, when Digital Realty and Blackstone announced a $7 billion hyperscale development joint venture across Northern Virginia, Frankfurt and Paris. The venture was designed to support about 500 megawatts of potential IT load across roughly 10 data centers, and Digital Realty continues to work with Blackstone across remaining joint ventures in those markets.
CBRE market coverage showed 1 gigawatt of capacity delivered in 2025, and the Northern Virginia Technology Council identifies Virginia as the world’s largest data center market. The Northern Virginia Technology Council puts the industry’s 2024 and 2025 economic output at nearly $40 billion, with more than 112,000 jobs and more than $1.5 billion in annual state and local tax revenue.
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