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Digital Realty Expands Northern Virginia Control
Coverage from Data Center Knowledge, CNBC, and others
Digital Realty is increasing its control of major Northern Virginia facilities while developing additional capacity in Virginia and Kansas City to serve hyperscale and AI workloads.
Its $3.5 billion agreement with Blackstone covers three fully leased facilities totaling 288 megawatts, while other plans include a potential 13-building Digital Dulles campus and up to two gigawatts of power near Kansas City. The developments show how data center growth is being shaped by ownership, financing, grid access, cooling requirements, and the need to demonstrate the infrastructure behind AI services.
The story now adds a new AI-infrastructure angle: Digital Realty is explicitly tying its portfolio to programmable infrastructure through a ServiceFabric initiative, alongside the earlier ownership and capacity expansion themes. The rest of the update largely confirms the same Northern Virginia, Kansas City, and AI-cooling narrative with slightly broader framing.
The story now extends beyond the Virginia stake buyout to show Digital Realty actively financing and scaling a much larger AI/data-center expansion pipeline, especially in Kansas City and at Digital Dulles. The updated framing also sharpens the operational constraints around that growth, emphasizing power, cooling, water, and community acceptance as central execution risks.