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DLR

Digital Realty Expands Development Pipeline and Acquires Teraco Stake

Digital Realty said it is making three transactions that expand its development pipeline, lift its ownership in Teraco and add a private-capital investment platform.

The company acquired about 1,440 acres at Astra Enterprise Park near Kansas City for about $475 million in cash and common units. Digital Realty said the site will support hyperscale data center development and comes with an energy service agreement for 600 megawatts of utility power by early 2028, expanding to 2 gigawatts at full delivery.

In its Africa business, Digital Realty is raising its Teraco stake to 77% by buying a 16% minority interest for about $650 million, mainly through the issuance of 3.4 million shares of common stock. The move increases its ownership from 61% to 77%, a 16-point increase.

Digital Realty also plans to buy Columbia Capital for about $485 million, mainly with 2.3 million shares of common stock. Columbia Capital has over $9 billion in fund commitments, and Digital Realty said the acquisition will deepen its private-capital platform.

Altogether, the three investments are being funded principally through the issuance of 6.3 million shares 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. The market has reacted to these announcements by moving the company's shares 3.6% to a price of $194.93. Check out the company's full 8-K submission here.

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