Blackstone Exits Digital Realty Stake in $2.3 Billion Secondary Offering
Event summary
- Digital Realty's largest shareholder, Blackstone, is selling 12.3 million shares at $185 each in a secondary offering worth ~$2.3 billion.
- The sale coincides with Digital Realty's acquisition of Blackstone's interests in two joint ventures (Digital Carver Dulles 9 and Brickyard) on June 30, 2026.
- Proceeds go entirely to Blackstone; Digital Realty neither sells shares nor receives proceeds from the offering.
- Morgan Stanley underwrote the deal, with closing expected July 1, 2026.
The big picture
Blackstone's sale caps its investment in Digital Realty, reflecting broader trends of private equity exits in the data center REIT space. The $2.3 billion offering underscores the sector's liquidity and investor appetite for infrastructure plays amid digital transformation. Digital Realty's consolidation of joint ventures may signal a push toward full ownership of high-growth assets.
What we're watching
- Capital Deployment
- How Digital Realty will allocate the proceeds from its joint venture acquisitions, given Blackstone's exit.
- Shareholder Base Shift
- The impact of a large block sale on Digital Realty's institutional ownership and stock liquidity.
- Strategic Focus
- Whether this marks Blackstone's full divestment from data center real estate or a phased exit.