Digital Realty, a leading provider of data center solutions, has announced a new joint venture with Blackstone to develop four hyperscale data center campuses in key global markets including Frankfurt, Paris and Northern Virginia.
The project is estimated to cost nearly $7 billion and will be funded by Blackstone-affiliated funds specializing in infrastructure, real estate and tactical opportunities. They will invest $700 million for an 80% ownership stake while Digital Realty retains the remaining 20%.
These state-of-the-art campuses will support the development of 10 data centers with a potential IT load capacity of approximately 500MW. Construction is already underway for facilities totaling 46MW, with one-third of that capacity already pre-leased to clients.
The remaining land capacity is currently in various pre-construction phases as demand from customers continues to grow. It is expected that by 2025, we will have delivered around 20% of the total potential IT load capacity with the rest being completed by or after2026.
According to Jon Gray , President and COO at Blackstone , “Data centers are experiencing unprecedented growth due to cloud adoption and advancements in AI technology.” He further added that investing behind this trend aligns perfectly with their firm’s highest conviction investment theme – digital infrastructure .
This joint venture between Blackstone and Digital Realty is scheduled for two stages during the first half of2024 subjectto regulatory approvalsand other customary closing conditions . Stay tuned for more updates on this exciting partnership!
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