Digital Realty to buy Blackstone-backed data center stake in $7.8 billion deal

Digital Realty said it will pay $3.5 billion for stakes in three Northern Virginia data centers and its shares fell 3.7% in premarket trading after the announcement.

Summary

Digital Realty said it is buying Blackstone's stakes in three Northern Virginia data centers for $3.5 billion in a deal that values the assets at $7.8 billion, and the company's shares fell 3.7% in premarket trading after the announcement. The Austin-based data center operator will pay $1.2 billion in cash and $2.3 billion in shares for Blackstone's 80% interest in two 96-megawatt facilities in Manassas, Virginia, and its 50% interest in one 96-megawatt facility in Sterling, Virginia. The transaction is expected to be completed on Tuesday.

Terms & Concepts
  • data centers: Facilities that house computing and storage systems
  • equity interest: An ownership stake in an asset or company