Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, and Blackstone Inc. (NYSE: BX) have announced that Digital Realty has agreed to purchase from Blackstone-affiliated funds managed by Real Estate, Infrastructure and Tactical Opportunities (Blackstone) a stake in three fully leased data centers containing 288 megawatts of total IT capacity in Northern Virginia at a gross value of US$7.8 billion, reflecting an expected initial stabilized capitalization rate of over 6.5%. Total consideration paid to Blackstone for their blended 64% equity interest in the assets will be US$3.5 billion, including US$1.2 billion of cash and US$2.3 billion in shares of Digital Realty, based on the last reported sale price of the company’s common stock on the New York Stock Exchange on June 29, 2026. The portfolio comprises two data centers in Manassas and one on the Digital Dulles campus in Sterling, each with 96 megawatts of IT capacity, that are 100% leased to three distinct investment-grade hyperscale customers.
Latham & Watkins LLP represents Digital Realty in the transaction with a corporate deal team led by Los Angeles partner Julian Kleindorfer, Orange County partner Darren Guttenberg, San Diego partner Ann Buckingham, and Los Angeles partner Brent T. Epstein, with associates Andrew Forgy, Lauren Richardson, and Kirstin Chubb. Advice was also provided on capital markets matters by counsel Devon L. MacLaughlin, with associates Will Coughlin, Dylan Joseph Shamoon, and Alondra Tlatelpa; on real estate matters by Chicago partner Robert Fernandez and Orange County partner Hilary Strong, with counsel Tiffany E. Taubman and associate Adrianna Robakowski; on tax matters by Los Angeles partners Ana O’Brien and Eric Cho and counsel Changsheng (Eric) Song, with associate Sina Setayeshpour; on antitrust matters by San Francisco partner Joshua Holian; on representations and warranties insurance matters by Los Angeles partner Drew Levin and counsel Hannah Cary, with associate Sandra Mathew; on finance matters by Los Angeles partner Jason Bosworth; and on benefits matters by Los Angeles partners Julie Crisp and David Taub, with associate Jordan Barnes.
