Digital Realty and Blackstone have formed a $12 billion joint venture to develop hyperscale data centre campuses across North America, Europe, and Asia, the companies confirmed on Wednesday.
Blackstone is providing the substantial majority of new equity capital, while Digital Realty contributes development expertise, existing land positions, and hyperscaler relationships built over two decades as a public REIT.
Capital intensity
The venture reflects the scale of capital now required to compete for hyperscaler colocation demand, which has pushed data centre development economics well beyond what most REITs can fund on balance sheet alone.