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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move highlighting continued consolidation in the data center sector, Digital Realty Trust announced it is purchasing a $3.5 billion stake in three data centers from Blackstone. The announcement sent Digital Realty shares down 4% in premarket trading, according to CNBC reports.
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Sign InThe 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 exact location of the data centers was not disclosed, but sources indicate they are in Virginia.
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.