Dan Rabb

The country’s top energy regulator has ordered regional grid operators to develop new plans to connect data centers to power as fast as possible while preserving grid reliability and avoiding rising electricity bills for consumers. The action carries vast implications for a data center sector contending with yearslong wait times for grid power and uncertainty about which solutions to the ongoing power crunch regional grids and regulators will allow.

Digital Realty is buying out Blackstone’s majority stake in a trio of Northern Virginia data centers totaling 288 megawatts of capacity that the two firms developed through a joint venture. The $3.5B cash-and-stock deal, expected to close Tuesday, will see Digital Realty acquire Blackstone’s 80% share of two 96 MW data centers in Manassas and 50% share of a 96 MW data center in Sterling. The facilities are fully leased to three different investment-grade tenants.

As data center projects face fierce opposition across the U.S., leaders at Microsoft and Oracle say the industry can no longer afford to be dismissive of local concerns. Instead, developers and hyperscalers need to be proactive and change how data centers are designed and built to be more palatable to the growing number of communities into which the industry is expanding.