Digital Realty Buys Data Centers for $7.8B

Digital Realty is expanding its footprint in Northern Virginia, the premier global market for data centers, through a significant acquisition. The company announced on Monday that it will purchase a majority stake in three fully leased data center facilities currently managed by Blackstone-affiliated funds.

This strategic move positions Digital Realty to capitalize on the escalating demand for data center capacity, fueled by the rapid growth of cloud computing and artificial intelligence. The total valuation for these assets has been set at $7.8 billion.

The acquisition agreement stipulates that Digital Realty will pay $3.5 billion to Blackstone's funds for their collective 64% equity interest. This consideration is structured as a combination of $1.2 billion in cash and $2.3 billion in Digital Realty shares, calculated based on the company's closing share price on June 29. The transaction is slated to be finalized on June 30.