Blackstone Inc.

New York Stock Exchange
Back to all articles
Somewhat Bullish +45

15 Best Data Center Stocks to Buy and Hold for the Next Decade

🏢 Digital Realty Trust agreed to purchase a 64% equity stake in three Northern Virginia data centers from Blackstone-affiliated funds.

💰 The acquisition is valued at $7.8 billion, with Digital Realty paying $3.5 billion via cash and stock.

⚡ The portfolio includes 288 megawatts of total IT capacity across three fully leased facilities in Manassas and Sterling.

📅 Two data centers are expected to stabilize in the first half of 2027, with the third following in early 2028.

🤝 All assets are currently 100% leased to three distinct investment-grade hyperscale customers.

📈 Barclays raised its price target for Digital Realty to $197 from $189 following the deal announcement.

🧠 Analysts cite higher growth expectations driven by ongoing hyperscale demand and accelerating enterprise AI adoption.

🏛️ The transaction reflects an expected initial stabilized capitalization rate of over 6.5%.

📉 The article suggests Digital Realty may have limited upside compared to other AI stocks, though this is a subjective editorial opinion.

Bullish Signals
  • Digital Realty has secured a major asset acquisition involving $7.8 billion in assets with 100% current lease coverage from investment-grade hyperscale customers.
  • The deal expands Digital Realty's footprint in Northern Virginia, a key region for AI infrastructure, with stabilization expected by mid-2027 and early 2028.
  • Barclays raised its price target for Digital Realty to $197, reflecting increased confidence in growth driven by hyperscale and enterprise AI demand.
  • The acquisition of fully leased assets provides immediate revenue visibility and reduces near-term leasing risk for the portfolio.
Risk Factors
  • The article explicitly states that Digital Realty may have less promise than other AI stocks, suggesting potential relative underperformance or higher valuation compared to peers.
Full Analysis
On June 30, 2026, Digital Realty Trust (NYSE: DLR) agreed to acquire a 64% equity stake in three fully leased Northern Virginia data centers from Blackstone-affiliated funds. The assets, valued at $7.8 billion with an expected stabilized capitalization rate over 6.5%, include two facilities in Manassas and one on the Digital Dulles campus in Sterling. The portfolio comprises a total of 288 megawatts of IT capacity, split into three distinct sites each holding 96 megawatts. All assets are currently 100% leased to three investment-grade hyperscale customers. The transaction involves $3.5 billion in payment, consisting of $1.2 billion in cash and $2.3 billion in DLR shares based on the NYSE closing price on June 29. Completion is expected by June 30, subject to customary conditions, with stabilization timelines set for the first half of 2027 for two centers and the third in the first half of 2028. Following the announcement, Barclays raised its price target for Digital Realty to $197 from $189 while maintaining an Equal Weight rating, citing higher growth expectations driven by hyperscale and enterprise AI demand. The article concludes with a promotional pitch suggesting that some AI stocks offer greater promise than DLR, directing readers to a separate report for 'cheaper' alternatives. This specific claim regarding relative performance is presented as the author's conviction rather than an objective market fact.