Digital Realty Expands Northern Virginia Control
Coverage from Axios, Reuters, and others
Articles
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Active Days
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The Topic

Digital Realty is increasing its control of major Northern Virginia facilities while developing additional capacity in Virginia and Kansas City to serve hyperscale and AI workloads. Its $3.5 billion agreement with Blackstone covers three fully leased facilities totaling 288 megawatts, while other plans include a potential 13-building Digital Dulles campus and up to two gigawatts of power near Kansas City. The developments show how data center growth is being shaped by ownership, financing, grid access, cooling requirements, and the need to demonstrate the infrastructure behind AI services.
First Article: 06/29/26
Latest Article: 07/24/26
Summary
- Digital Realty agreed to pay $3.5 billion for Blackstone stakes in three Northern Virginia data centers totaling 288 megawatts.
- The acquired facilities are fully leased to investment-grade hyperscale customers, with stabilization expected between the first half of 2027 and the first half of 2028.
- Digital Realty’s Digital Dulles campus could eventually include 13 data centers and more than $10 billion in investment over the next decade.
- The company raised $2.28 billion in equity while pursuing a roughly $475 million, 1,440-acre Kansas City acquisition supported by up to two gigawatts of power.
- AI facilities are increasing demands for high-density rack cooling, electricity, backup generation, and decisions about water use.
- Digital Realty is also positioning its global portfolio as programmable infrastructure through its ServiceFabric Model Context Protocol initiative.
History
The story now adds a new AI-infrastructure angle: Digital Realty is explicitly tying its portfolio to programmable infrastructure through a ServiceFabric initiative, alongside the earlier ownership and capacity expansion themes. The rest of the update largely confirms the same Northern Virginia, Kansas City, and AI-cooling narrative with slightly broader framing.
The story now extends beyond the Virginia stake buyout to show Digital Realty actively financing and scaling a much larger AI/data-center expansion pipeline, especially in Kansas City and at Digital Dulles. The updated framing also sharpens the operational constraints around that growth, emphasizing power, cooling, water, and community acceptance as central execution risks.
