The cash-and-stock transaction, announced on Monday, underscores the growing demand for data centre infrastructure as cloud computing and artificial intelligence continue to fuel rapid expansion across the sector.
Under the agreement, which is expected to close on Tuesday, Digital Realty will pay $1.2 billion in cash and issue approximately $2.3 billion worth of Digital Realty shares to funds managed by Blackstone.
The acquisition significantly expands Digital Realty's presence in Northern Virginia, a region widely regarded as the world's largest data centre hub and a critical location for major cloud service providers and AI-driven computing infrastructure.
As part of the deal, Digital Realty will acquire Blackstone's 80 per cent interest in two 96-megawatt data centres located in Manassas, Virginia, along with a 50 per cent interest in another 96-megawatt facility in Sterling, Virginia.
The companies disclosed that the combined assets are valued at approximately $7.8 billion, including outstanding debt and planned capital expenditures.
Digital Realty's Chief Financial Officer, Matt Mercier, said the acquisition is expected to strengthen the company's long-term financial performance as the projects become fully operational.
"This transaction is expected to be accretive to Core FFO per share in each of 2027 and 2028, as development is completed and rents commence," Mercier said.
According to the companies, two of the three facilities are expected to reach stabilised operations during the first half of 2027, while the remaining data centre is projected to stabilise in the first half of 2028.
Digital Realty's Chief Investment Officer, Greg Wright, described the acquisition as another milestone in the company's long-standing partnership with Blackstone, noting that the firms will continue collaborating on several international data centre investments.
"We have developed a strong partnership with Blackstone through the successful ongoing development of these assets, and we continue to work together across the remaining data center investments in our joint ventures in Northern Virginia, Paris and Frankfurt," Wright said.
"This transaction reflects the next phase of that relationship, allowing us to increase our ownership in a portfolio of fully leased, high-quality hyperscale assets."
Despite the strategic significance of the acquisition, investors reacted cautiously, with Digital Realty shares falling about 2.4 per cent in extended trading following the announcement.
The transaction highlights continued investor confidence in the data centre sector, where soaring demand for cloud services, artificial intelligence applications and digital infrastructure has made high-capacity facilities among the most sought-after real estate assets globally.