A partnership was announced between Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data centers, colocation, and interconnection solutions, and Blackstone Inc.. Blackstone, Inc. (NYSE: BX) announced today that a number of Blackstone-affiliated funds led by Infrastructure, Real Estate, and Tactical Opportunities will be establishing a joint venture with Digital Realty to develop four hyperscale data center campuses across three metro areas on two continents..  It is estimated that the developments will be able to support approximately 500 megawatts (MW) of total IT load upon completion of the full build out of all campuses.  Blackstone will acquire 80% ownership interest in the joint venture for an initial capital contribution of approximately $700 million, while Digital Realty will maintain a 20% ownership interest in the joint venture..  After the closing of the joint venture, the joint venture parties will fund their pro rata share of the remaining development costs after the closing has been completed..  This joint venture will be managed by Digital Realty, which will be receiving a customary fee for managing the joint venture's development and day-to-day operations
 This joint venture will be managed by Digital Realty, which will be receiving a customary fee for managing the joint venture's development and day-to-day operations
A total of four hyperscale data center campuses are to be developed in Frankfurt, Paris, and Northern Virginia over the next several years with a total estimated development cost of approximately $7 billion over the course of the development period..  It is planned that the campuses will support the construction of 10 data centers with a potential IT load capacity of approximately 500 MW.  46 MW of this capacity is currently under construction and 33% of it has been preleased.  At this point, the remaining land capacity is in varying stages of pre-construction and is expected to be developed as soon as possible to meet the needs of our customers.  There are approximately 20% of the total potential IT load capacity that is expected to be delivered through 2025, with the remaining 20% expected to be delivered between 2026 and 2028.
  There are approximately 20% of the total potential IT load capacity that is expected to be delivered through 2025, with the remaining 20% expected to be delivered between 2026 and 2028.
With the partnership with Blackstone, the world's largest alternative asset manager, Digital Realty will be able to provide the capacity needed to meet the burgeoning demand of our hyperscale customers as well as access a deep pool of likeminded private capital to meet that demand," said Andy Power, President and CEO of Digital Realty..  Digital Realty is committed to taking advantage of the sizable opportunity ahead, and this partnership will help to accelerate the monetization of nearly 20% of our industry-leading land bank in the near future," he said.
  Digital Realty is committed to taking advantage of the sizable opportunity ahead, and this partnership will help to accelerate the monetization of nearly 20% of our industry-leading land bank in the near future," he said.

Source prnewswire