Digital Realty agreed to purchase stakes in three Northern Virginia data centers from Blackstone for $3.5 billion.

The deal covers 80% stakes in two data centers in Manassas and a 50% stake in a data center located at the Digital Dulles campus in Sterling, the company said Monday. Each data center has 96 megawatts of compute capacity and is 100% leased to distinct investment-grade hyperscalers, it added. The deal gives the data centers a gross value of $7.8 billion, Digital Realty said.

The transaction is expected to be accretive to core funds from operations per share in 2027 and 2028 and should also bolster contractual organic rent growth, Chief Financial Officer Matt Mercier said.

The company said it plans to pay for Blackstone's blended equity interest of 64% through $1.2 billion of cash and $2.3 billion worth of stock, based on the company's Monday closing price.

Separately, Digital Realty also said it plans a public offering of $2.35 billion worth of shares held by Blackstone affiliates, contingent on the closing of the data-center deal.

Digital Realty's chief investment officer, Greg Wright, said the deal comes out of a strong relationship between the company and Blackstone, noting that they continue working on data-center investments through joint ventures.

Shares of Digital Realty fell 1.9% to $187.00 in after-hours trading on Monday.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

June 29, 2026 16:36 ET (20:36 GMT)

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