VIRGINIA: Blackstone Inc is selling its stakes in three data centres (DCs) across Northern Virginia, a part of the country where residents are increasingly pushing back against the sprawling developments.
Digital Realty Trust Inc will pay US$1.2bil of cash and offer US$2.3bil of its shares to Blackstone funds, the firms said in a statement Monday. In exchange, the DC company will acquire Blackstone’s 80% interest in two 96 megawatts (MW) DCs in Manassas, Virginia, and a 50% interest in a 96MW DC in nearby Sterling.
The assets involved in this week’s sale were part of a joint venture that Blackstone had set up with Digital Realty in 2023.
Much of that investment has poured into Virginia’s Digital Gateway, an ambitious plan for a 2,100-acre corridor that would house as many as 37 DC buildings.
Other DCs set to be included in that corridor have faced strident opposition from communities across the state.
Compass Datacenters, backed by Brookfield Asset Management, recently pulled out of effort to build a key part of the development after facing intense pushback from local residents.
Blackstone’s QTS is also fighting in court to salvage a similarly sized development on adjacent parcels.
Blackstone and Digital Realty will continue to work together on their remaining DC investments located elsewhere in Northern Virginia as well as in Paris and Frankfurt.
“We have developed a strong partnership with Blackstone,” said Digital Realty chief investment officer Greg Wright in the statement.
“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.” — Bloomberg
