Digital Realty Buys Stake In A $7.8B Data Center Portfolio

Digital Realty just bought out Blackstone for $3.5B.

The assets are already leased to hyperscale tenants...

Northern Virginia is the most important data center market on earth right now, and Digital Realty just deepened its position in it significantly.

- Three 96MW hyperscale data centers
- 288MW total IT capacity
- Three hyperscale tenants
- Assets valued at $7.8B
- 15-year leases

These are contracted, cash-flowing assets in the world's most supply-constrained AI corridor.

This portfolio is being valued at roughly $27 million per MW and $27,000 per kW of IT capacity.

Blackstone built it, stabilised it, and recycled the capital. Textbook infrastructure exit.

In a CNBC interview, CEO Andy Power emphasised that you “can’t build data centers fast enough” to match hyperscaler and AI demand.

Are we at peak DC valuations or just getting started?