Asset management giant Apollo Global Management has made a strategic move by purchasing a majority stake in Stream Data Centers (SDC). This acquisition aims to address the burgeoning demand for hyperscale cloud and AI infrastructure in the United States. The financial details of the transaction remain undisclosed, with Apollo acquiring these shares from Stream Realty Partners, the parent company of SDC.
Stream Data Centers, operational for over 25 years, boasts more than 20 campuses and a robust development pipeline. Notably, they hold over 4 GW of long-term “powered land,” which indicates areas with reserved power capacity but no established data center yet. With Apollo’s financial backing, SDC is poised to expand its platform-wide development to meet the increasing demand from leading tech companies.
Apollo Partners Joseph Jackson and Trevor Mills commented, “Stream Data Centers represents a landmark digital infrastructure transaction for Apollo. With deep development expertise, we believe SDC is uniquely positioned to serve the infrastructure needs of the world’s most sophisticated technology customers. Apollo will bring scaled capital and structuring capabilities to help drive recurring origination across our ecosystem.”
This acquisition’s potential seems vast. While SDC is set to lead with its management team retaining a minority stake, Apollo plans to invest in a multi-gigawatt pipeline. Such a move aligns with an ambitious vision to facilitate a substantial deployment of capital into next-generation digital infrastructures.
Additionally, Stream Data Centers is expected to receive an influx of cash for its data center land fund, which will accelerate developments in regions such as Chicago, Atlanta, and Dallas. These areas will soon witness an expansion of their data center capabilities, meeting both the immediate and long-term requirements of the tech giants.
SDC Co-managing partners Michael Lahoud and Paul Moser expressed gratitude towards Stream Realty Partners for laying firm foundations for SDC’s current growth trajectory. They emphasized the importance of Apollo’s support for scaling developments swiftly, aligning with the needs of hyperscale clients.
