Simpson Thacher is representing Blackstone-affiliated funds managed by Real Estate, Infrastructure and Tactical Opportunities (“Blackstone”) in its announced sale of a stake in three fully leased data centers containing 288 megawatts of total IT capacity in Northern Virginia at a gross value of $7.8 billion to Digital Realty, the world’s largest cloud- and carrier-neutral data center platform.
Total consideration paid to Blackstone for their blended 64% equity interest in the assets will be $3.5 billion, including $1.2 billion of cash and $2.3 billion in shares of Digital Realty, based on the last reported sale price of the company’s common stock on the New York Stock Exchange on June 29, 2026. The portfolio comprises two data centers in Manassas and one on the Digital Dulles campus in Sterling, each with 96 megawatts of IT capacity, that are 100% leased to three distinct investment grade hyperscale customers. The purchase is expected to be completed on June 30, 2026 and is subject to customary closing conditions.
The Simpson Thacher team was led by Michael Chao and Sam Rudik, members of the Firm’s market-leading AI, Digital Infrastructure and Data Center group, and also included: Samyel Lee (M&A); Emily Rosenthal, Cristiana Modesti and Joshua Schub (Real Estate); Will Golden, Jonathan Ozner, Samantha Sergent, Jane Olin-Ammentorp, Katie Byun and Noor Irshaidat (Capital Markets); and Nancy Mehlman, Ed Grais, Elizabeth Trask and Benjamin Bressler (Tax).