Blackstone And Digital Realty Forge $7B Data Center Alliance: Powering The Future Of Cloud And AI
Portfolio Pulse from Lekha Gupta
Blackstone Inc (BX) and Digital Realty Trust Inc (DLR) have announced a joint venture to develop four hyperscale data center campuses with an estimated development cost of $7 billion. The campuses will be located in Frankfurt, Paris, and Northern Virginia, aiming to support 10 data centers with approximately 500 MW of IT load capacity. Blackstone will hold an 80% ownership interest with $700 million of initial capital contributions, while Digital Realty will hold a 20% interest and manage the operations. The joint venture is expected to close in H1 2024, subject to approvals. DLR shares rose 1.47% to $136, while BX shares fell 0.71% to $113.05 in premarket trading.
December 08, 2023 | 11:12 am
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POSITIVE IMPACT
Digital Realty Trust Inc partners with Blackstone to develop data centers, with shares up 1.47% to $136 premarket.
Digital Realty's share price increase reflects positive investor sentiment towards the joint venture with Blackstone. The company's role in managing the development and operations of the venture is likely seen as a strategic growth opportunity.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Blackstone Inc is investing $700 million for an 80% stake in a joint venture with Digital Realty to develop data centers, with shares down 0.71% premarket.
Blackstone's significant investment in the joint venture reflects a strong commitment to the data center market, which is currently experiencing high demand. The slight premarket dip in BX shares may be due to market reactions to the capital outlay required for the venture.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80