Data centre solution provider Digital Realty Trust partnered with investment firm Blackstone to develop $7 billion four hyperscale data centre campuses across three metro areas on two continents, on Thursday.
The company said developments are expected to support about 500 megawatts (MW) of total IT load upon full build out of all campuses. Blackstone will acquire an 80% ownership interest in the joint venture for about $700 million of initial capital contributions, while Digital Realty will maintain a 20% interest, the company added.
Andy Power, chief executive of Digital Realty stated, “By partnering with Blackstone, Digital Realty is better able to deliver capacity to meet the burgeoning demand of our hyperscale customers, by accessing a deep pool of like minded private capital.”
“Digital Realty is focused on executing on the sizable opportunity that lies ahead and this partnership helps to accelerate the monetization of nearly 20% of our industry-leading land bank,” Andy also said.
Jon Gray, operating chief of Blackstone said, “Digital infrastructure is one of our highest conviction investment themes as a firm, and this transaction with a data centre operator in Digital Realty is another example of how we are investing behind this trend.”
The joint venture is planned to close in two stages during the first half of 2024, subject to certain regulatory and other approvals, as well as other customary closing conditions.
A week ago, Blackstone closed its latest $2.6 billion real estate secondaries fund, Strategic Partners Real Estate VIII, and its related committed program vehicles.
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