Digital Realty buys $7.8B Blackstone data center stake; shares fall 4%

Key Facts

In a move highlighting continued consolidation in the data center sector, Digital Realty Trust announced it is purchasing a $7.8 billion stake in three data centers from Blackstone. The announcement sent Digital Realty shares down 4% in premarket trading, according to CNBC reports.

The three data centers are located in Northern Virginia, a key region for internet infrastructure. The acquisition comes amid rising demand for data centers driven by artificial intelligence and cloud computing. Per market data, Digital Realty closed at $190.58 on June 29, while Blackstone closed at $114.88. The deal is expected to support Digital Realty's future Core FFO growth.

With the stock down 4% in premarket trading, it is expected to open below the prior session's close. Investors are watching for analyst reactions and the deal's impact on Digital Realty's balance sheet, especially as no major economic events are scheduled this week that could affect the sector.