Blackstone Inc (NYSE:BX) has agreed to sell its stake in three fully leased data centres in Northern Virginia to Digital Realty in a deal valued at $3.5 billion to Blackstone’s blended 64% equity interest.
The portfolio comprises two data centres in Manassas and one on the Digital Dulles campus in Sterling, each with 96 megawatts of IT capacity. The assets are fully leased to three investment-grade hyperscale customers.
The total gross value of the portfolio is $7.8 billion, with an expected initial stabilised capitalisation rate of over 6.5%. The consideration to Blackstone includes $1.2 billion in cash and $2.3 billion in Digital Realty shares, based on the last reported New York Stock Exchange sale price of Digital Realty’s common stock on 29 June 2026.
The transaction is expected to complete on 30 June 2026, subject to customary closing conditions. Digital Realty said it agreed to buy Blackstone’s 80% interest in two 96 megawatt data centres in Manassas and a 50% interest in one 96 megawatt data centre in Sterling, including assumed debt and remaining capex to complete the ongoing development.
Two of the data centres are expected to stabilise in the first half of 2027, with the third expected to stabilise in the first half of 2028. The assets are supported by 15-year leases with a blended average AA- customer credit rating and 3.6% annual rent escalators.
Digital Realty said the transaction is expected to be accretive to Core FFO per share in 2027 and 2028, and to support contractual organic rent growth and portfolio quality. The company also said the deal increases its exposure to new capacity in the Northern Virginia market.