US Stock Market Move | Intended acquisition of a portion of Blackstone Data Center's equity, Digital Realty (DLR.US) falls over 5%.

On Tuesday, Digital Realty (DLR.US) fell over 5%. On the news front, the company announced on Monday that it has agreed to acquire a majority stake in three large-scale data centers in Northern Virginia owned by Blackstone Inc. (BX.US) for a total consideration of $3.5 billion. The deal will be paid with $1.2 billion in cash and $2.3 billion in Digital Realty stock, with the total value of the assets reaching $7.8 billion. This includes an 80% stake in two 96-megawatt data centers in Manassas and a 50% stake in a 96-megawatt data center in the Digital Dulles Park in Sterling. The acquisition of Blackstone's stake in Northern Virginia data centers by Digital Realty is a landmark asset restructuring deal in the wave of AI computing infrastructure construction. However, despite the solid fundamentals of this deal, there are concerns in the market about the short-term dilution effect. Firstly, the additional supply of stocks will dilute earnings per share in the short term. Secondly, since the two facilities won't be fully operational until the first half of 2027, and the third facility won't be fully operational until the first half of 2028, there is a lag in the accretive effect on FFO. Investors are not only concerned about whether Northern Virginia will maintain its top market position, but also whether the construction and leasing processes can proceed as planned.