Digital Realty announced on Tuesday that it is purchasing a $3.5 billion stake in three data centers from Blackstone, with the assets located in Northern Virginia and valued at $7.8 billion overall [1]. The Austin-based global data center company will pay $1.2 billion in cash and $2.3 billion in shares as part of the transaction, which is expected to be completed on Tuesday [1].
Specifically, Digital Realty will acquire Blackstone's 80% interest in two 96-megawatt data centers in Manassas, Virginia, as well as a 50% interest in one 96-megawatt data center in Sterling, Virginia [1].
Following the announcement, Digital Realty shares fell in premarket trading, last trading down 3.7% before the market opened, indicating a negative initial market reaction to the news [1].
No forward-looking statements or analyst opinions were provided in the article [1].
CONCLUSION
Digital Realty's $3.5 billion acquisition of stakes in Blackstone's Virginia data centers led to a nearly 4% drop in its share price in premarket trading. The market's initial reaction suggests investor concern or uncertainty regarding the deal's impact.