Last Update: 08/01/2026 at 3:34 PM EST

Digital Realty Expands Northern Virginia Control

Coverage from Axios, Reuters, and others

Articles

14

Active Days

26

The Topic

Digital Realty Expands Northern Virginia Control topic image

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

07/27/2026

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.

07/25/2026

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.

Full History

Featured

Timeline: 26 Days

Jun 29Jul 3Jul 9Jul 13Jul 19Jul 23

Additional Articles

⭐⭐⭐⭐⭐

Data Center Knowledge06-30-2026
Digital Realty will repurchase Blackstone-managed joint venture ownership stakes in three Northern Virginia data centers for $3.5 billion, targeting 100% control by June 30.

⭐⭐⭐

Yahoo / Jeff Lewis07-06-2026
Digital Realty and Blackstone agreed on a June 30 purchase of Blackstone stakes in three fully leased Northern Virginia data centers totaling 288 MW.
Yahoo / Sasha Jovanovic07-01-2026
Digital Realty Trust completed a US$2.28 billion equity offering to fund expansion, including a Kansas City-area 1,440-acre hyperscale land purchase targeting up to two gigawatts of power.
Yahoo Finance / Bailey Pemberton07-02-2026
Blackstone and Digital Realty announced a 3.5 billion transaction to transfer fully leased hyperscale data center stakes in Northern Virginia, using cash and stock.
Yahoo Finance / Jeff Lewis07-06-2026
Digital Realty agreed to buy a 64% stake in three fully leased Northern Virginia data centers with 288 MW IT capacity from Blackstone-affiliated funds, with closing expected June 30.
Yahoo Finance / Sasha Jovanovic07-24-2026
Digital Realty Trust raised its 2026 funds-from-operations outlook in Q2 2026 after record leasing renewals tied to cloud and AI demand and plans a Blackstone stake acquisition for three hyperscale data centers.
Realty Income / Realty Income06-30-2026
Realty Income announced a joint venture in June 2026 to invest up to $1.4 billion in hyperscale data center assets under 15- to 20-year triple-net leases, including a Northern Virginia stabilized facility.
Datacenterdynamics06-30-2026
Digital Realty agreed to buy Blackstone's 64 percent equity interest in three fully leased Northern Virginia data centers for $3.5 billion, with closing expected this week.
The Motley Fool / Matt DiLallo07-02-2026
Realty Income, partnering with Digital Realty in late 2023, and forming a new hyperscale JV in 2024 plans up to $1.4 billion for leased data centers.
Bloomberg / Preeti Singh06-29-2026
Blackstone Inc. is selling three Northern Virginia data center stakes to Digital Realty for $3.5 billion, including Manassas and Sterling 96-megawatt facilities.
Blackstone06-29-2026
Digital Realty agreed to acquire Blackstone funds' 64% stake in three Northern Virginia data centers totaling 288 MW, with closing expected June 30, 2026.