Digital Realty and Blackstone Announce $7B Hyperscale Data Center Development Joint Venture; Blackstone Will Acquire 80% Ownership Interest In Joint Venture For ~$700M Of Initial Capital Contributions; Digital Realty Maintains 20% Interest
Portfolio Pulse from Benzinga Newsdesk
Digital Realty and Blackstone have formed a $7 billion joint venture to develop hyperscale data centers. Blackstone will acquire an 80% ownership interest in the joint venture with approximately $700 million of initial capital contributions, while Digital Realty retains a 20% interest.
December 07, 2023 | 9:39 pm
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Blackstone acquires an 80% stake in a $7 billion joint venture with Digital Realty for hyperscale data center development, contributing approximately $700 million in initial capital.
Blackstone's significant investment in the joint venture with Digital Realty is likely to be viewed positively by investors, as it expands their presence in the growing market for hyperscale data centers. The substantial capital commitment indicates a strong belief in the venture's potential.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Digital Realty maintains a 20% interest in the $7 billion joint venture with Blackstone for the development of hyperscale data centers.
Digital Realty's retention of a 20% interest in the joint venture with Blackstone may be seen as a strategic move to leverage Blackstone's investment while still maintaining a significant stake in the venture. This could be perceived positively by investors as it allows Digital Realty to benefit from the venture with a lower capital outlay.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80