Digital Realty Announces Transactions to Drive Continued Platform Growth

Rhea-AI Summary

Digital Realty (NYSE:DLR) announced three transactions totaling about $1.6 billion to support its growth pillars: a 1,440‑acre, two‑gigawatt hyperscale development site near Kansas City, a higher stake in Teraco, and the planned acquisition of Columbia Capital.

These deals will be mainly funded with 6.3 million newly issued shares and units at a weighted average price of $197.54, with the Teraco and Columbia Capital transactions targeted to close in the second half of 2026, subject to customary conditions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

• Acquires 1,440-acre Kansas City site for about $475 million
• Secures utility power up to two gigawatts at Kansas City site
• Raises Teraco ownership to 77% via $650 million 16% stake purchase
• Plans $485 million acquisition of Columbia Capital to expand private capital platform
• Total roughly $1.6 billion deployed toward data center and capital platform growth

Negative

• Investments principally funded through issuance of 6.3 million new shares and units, implying dilution

News Market Reaction – DLR

+3.51%

+3.51% News Effect

On the day this news was published, DLR gained 3.51%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

What This Means

This announcement ties together new hyperscale land, raising Teraco ownership to 77% and a $485 mill...

Analysis

This announcement ties together new hyperscale land, raising Teraco ownership to 77% and a $485 million Columbia Capital deal, funded with 6.3 million shares. Execution on power build-out and integration of the private capital platform remain key watchpoints.

Key Figures

Kansas City land size: 1,440 acres Kansas City site price: $475 million Initial utility power: 600 megawatts +5 more

8 metrics

Kansas City land size 1,440 acres Astra Enterprise Park hyperscale development site

Kansas City site price $475 million Acquisition of powered land in Kansas City metro

Initial utility power 600 megawatts Energy Service Agreement by early 2028

Full power capacity 2 gigawatts Maximum planned delivery under Energy Service Agreement

Teraco ownership 77% Post-transaction stake in Teraco

Teraco stake price $650 million Purchase of additional 16% Teraco stake

Columbia Capital price $485 million Planned acquisition consideration

Equity funding size 6.3 million shares at $197.54 Common stock and OP units to fund transactions

Historical Context

5 past events · Latest: Jun 17 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 17	AI product launch	Positive	-1.8%	Launch of ServiceFabric MCP AI-native programmable control across 800+ data centers.
May 27	Impact report	Neutral	-0.1%	Release of 2025 Impact Report highlighting renewable energy and efficiency progress.
May 18	New data center	Positive	-0.0%	Opening of first Barcelona data center targeting AI and cloud workloads.
May 12	Dividend declaration	Positive	-1.0%	Quarterly cash dividends declared for common and preferred stock for Q2 2026.
May 06	Workforce partnership	Positive	+1.5%	Global partnership with DCD Academy to expand operations workforce training.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news, including positive growth and dividend items, has often been followed by flat to mildly negative next-day moves.

Key Terms

hyperscale, colocation, operating partnership, earnout, +1 more

5 terms

hyperscale technical

"expansion of its hyperscale data center development capacity through the acquisition"

Hyperscale describes the ability of a system or operation to grow rapidly and handle extremely large amounts of work or data. It’s like a massive factory that can quickly expand its production capacity to meet soaring demand. For investors, hyperscale indicates a business’s potential to scale efficiently, often leading to increased growth and profitability.

colocation technical

"investment in its colocation and connectivity platform, Digital Realty is increasing"

Colocation is the practice of placing a trader’s computer servers inside or next to an exchange’s data center so their orders travel the shortest possible distance to the exchange’s computers. For investors this matters because even tiny gains in speed can mean better trade prices or reduced slippage—like being first in line at a checkout—so firms that colocate can gain steady, measurable advantages or incur extra costs that affect returns.

operating partnership financial

"$475 million(1) in cash and common units in its operating partnership"

An operating partnership is a separate legal entity set up to own and run a company’s core assets and day-to-day businesses, while investors hold interests indirectly through the parent company. Think of it like a dedicated garage that actually stores and services the cars while the owner keeps the dealership; it matters to investors because it affects how income, taxes, liability and voting rights are allocated and therefore can influence distributions and risk.

earnout financial

"and an earnout that is subject to certain performance hurdles"

An earnout is a financial agreement in which part of the purchase price for a business is paid later, based on the company's future performance. It acts like a bonus system, where sellers earn extra money if the business hits certain goals, aligning their interests with the buyer’s success. Investors pay attention to earnouts because they influence the total deal value and can affect the company's future financial health.

lockup financial

"shares of common stock, with a lockup that releases over a multi-year period"

A lockup is a contractual restriction that prevents company insiders, early investors, and employees from selling their shares for a fixed period after a public offering or other share issuance. It matters to investors because when that period ends, a sudden increase in available shares can push the stock price down or change trading liquidity; think of it like many homeowners being allowed to list their homes for sale all at once after a temporary sales ban is lifted.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Secures Two-Gigawatt Development Site in Kansas City Metro, and Plans to Increase Teraco Ownership and to Acquire Columbia Capital

AUSTIN, Texas, June 22, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, today announced a series of transactions that together bolster the company’s three core pillars of growth: (i) expansion of its hyperscale data center development capacity through the acquisition of a new powered land site in the Kansas City metro, (ii) growth of its colocation and connectivity portfolio through the purchase of certain minority shareholder stakes in Teraco, and (iii) further scaling of its Strategic Private Capital platform through the acquisition of Columbia Capital a leading investment firm in the digital infrastructure space.

Expansion into Kansas City Market
Digital Realty has acquired approximately 1,440 acres of land at Astra Enterprise Park, located near Kansas City to support hyperscale data center development for approximately $475 million⁽¹⁾ in cash and common units in its operating partnership. The acquisition marks an entry into a Top 30 U.S. metro with fast-growing technology sector exposure, ample utility and telecommunications infrastructure, and strong connectivity fundamentals. According to datacenterHawk, the Kansas City metro is the 7^th largest data center market in the U.S., when including capacity that is currently under construction and in planning.

To support development of the site, Digital Realty has entered into an Energy Service Agreement with the local utility to provide 600 megawatts of utility power by early 2028, rising to two gigawatts at full delivery.

Increase in Teraco Ownership
As part of the continued investment in its colocation and connectivity platform, Digital Realty is increasing its ownership interest in Teraco, Africa’s leading data center platform, to 77% through the acquisition of shares from certain minority shareholders. Digital Realty will purchase the 16% stake for approximately $650 million⁽¹⁾, principally via the issuance of 3.4 million shares of common stock.

Teraco represents a key component of Digital Realty’s global colocation and connectivity footprint, with a portfolio of highly connected, network-dense campuses serving a growing base of customers across the EMEA region.

Acquisition of Columbia Capital
Digital Realty plans to acquire Columbia Capital for approximately $485 million⁽¹⁾, principally through the issuance of 2.3 million shares of common stock, with a lockup that releases over a multi-year period and an earnout that is subject to certain performance hurdles. Founded in 1989, Columbia Capital is focused on the communications,   technology and digital infrastructure space, with over $9 billion in fund commitments from hundreds of investors, including sovereign wealth funds, pension funds, insurance companies, endowments and other institutional investors.

The acquisition will accelerate Digital Realty’s Strategic Private Capital platform and provides increased expertise and visibility into adjacent digital infrastructure sectors. Columbia Capital’s experienced investment team and established portfolio complement Digital Realty’s global operating platform and will strengthen investment capabilities to take advantage of the expanding AI infrastructure ecosystem.

Columbia Capital and Digital Realty have collaborated on multiple digital infrastructure projects. Columbia is a long-time co-investor in Teraco whose involvement predates Digital Realty’s acquisition of a majority interest in August 2022. The two companies have also partnered through Vela Infrastructure, a subsea cable landing station developer.

Executive Commentary
“These transactions support the continued momentum of Digital Realty’s three core pillars of growth. The purchase of land in the Kansas City metro enhances our ability to serve hyperscale customers’ near term requirements, while our increased stake in Teraco strengthens our position in Africa’s leading data center platform and supports the continued growth of our global colocation and connectivity business,” said Andy Power, President and Chief Executive Officer of Digital Realty. “Our history of collaboration with Columbia Capital reflects a shared long-term perspective while providing additional flexibility to support the scaling of both our hyperscale development pipeline and our private capital platform.”

"Taken together, these transactions are expected to further enhance Digital Realty's growth profile, while maintaining our balance sheet discipline and positioning the company for the continued investment opportunity we see ahead," said Matt Mercier, Chief Financial Officer of Digital Realty. These investments will be principally funded through the issuance of 6.3 million shares of common stock (and operating partnership units) at a weighted average price of $197.54 per share (or unit).

The Teraco and Columbia Capital transactions are expected to close in the second half of 2026 and remain subject to customary closing conditions.

Additional Resources

• De Soto data center project
• Project Sediba: Teraco's renewable energy milestone
• The PERE Podcast: Andy Power discusses the strategic importance of Private Capital to Digital Realty
  
  

About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL^®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx^®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives customers access to the connected data communities that matter to them through a global footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more, visit digitalrealty.com or follow us on LinkedIn and X.

For Additional Information
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 737 281 0101
InvestorRelations@digitalrealty.com

Media Contact
Helen Bleasdale
Digital Realty
+1 737 267 6822
hcbleasdale@digitalrealty.com

Safe Harbor Statement
This press release contains forward-looking statements based on current expectations, forecasts, and assumptions that involve risks and uncertainties which may cause actual results to differ materially from those described. These include statements related to the Fund, customer demand, expected benefits, use of proceeds, and the company’s strategy. For a description of these risks and uncertainties, please refer to the company’s filings with the U.S. Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements.

¹ Based on closing stock price of $188.15/sh as of June 18, 2026.

FAQ

What transactions did Digital Realty (NYSE:DLR) announce on June 22, 2026?

Digital Realty announced three major transactions: a new Kansas City development site, an increased stake in Teraco, and a planned acquisition of Columbia Capital. According to Digital Realty, these moves support hyperscale development, colocation and connectivity growth, and its Strategic Private Capital platform.

What is included in Digital Realty's new Kansas City data center development plan?

Digital Realty acquired about 1,440 acres at Astra Enterprise Park near Kansas City for roughly $475 million. According to Digital Realty, an Energy Service Agreement targets 600 megawatts of power by early 2028, rising to two gigawatts at full delivery for hyperscale data center development.

How is Digital Realty increasing its ownership in Teraco and what will its stake be?

Digital Realty is buying an additional 16% stake in Teraco for about $650 million, mainly in stock. According to Digital Realty, this purchase will raise its Teraco ownership to 77% and further support its global colocation and connectivity footprint across the EMEA region.

What are the key details of Digital Realty's planned acquisition of Columbia Capital?

Digital Realty plans to acquire Columbia Capital for approximately $485 million, primarily paid in 2.3 million shares. According to Digital Realty, the deal includes a multi-year lockup and performance-based earnout, and is intended to accelerate its Strategic Private Capital platform and digital infrastructure expertise.

How will Digital Realty fund the Kansas City, Teraco and Columbia Capital investments?

Digital Realty expects to fund these investments mainly through equity, issuing 6.3 million shares and operating partnership units. According to Digital Realty, the weighted average price for these securities is $197.54 per share or unit, aligning funding with its balance sheet objectives.

When are Digital Realty's Teraco and Columbia Capital transactions expected to close?

Digital Realty expects the Teraco ownership increase and Columbia Capital acquisition to close in the second half of 2026. According to Digital Realty, both transactions remain subject to customary closing conditions, so timing could vary depending on completion of required approvals and agreements.