Apollo funds to acquire majority stake in Stream Data Centers

Apollo announced that Apollo-managed funds have agreed to acquire a majority interest in Stream Data Centers from Stream Realty Partners. With Apollo’s backing, SDC is positioned to execute on a multi-gigawatt pipeline while enabling Apollo Funds and affiliates to potentially deploy billions of dollars into next-generation digital infrastructure. SDC’s management team will retain a minority stake and continue leading the business. SDC builds, leases, manages and operates hyperscale data center campuses and has delivered more than 20 campuses to date. The Company controls over 4 gigawatts of long-term powered land and has a robust near-term pipeline. With Apollo Funds’ capital and strategic support, SDC plans to scale platform-wide development to meet accelerating demand from hyperscale cloud and AI providers across key Tier 1 and Tier 2 U.S. markets. Apollo estimates that data centers will require several trillion dollars of global investment over the next decade, driven by a secular global industrial renaissance, with substantial investments required in power, facilities and semiconductor chips. Since 2022, Apollo-managed funds have deployed approximately $38B into next-generation infrastructure investments, including renewable energy, digital platforms and compute capacity. The firm plans to significantly scale its investment in these areas in the coming years, both through Stream and as a capital partner to other market participants. As part of the transaction, Apollo Funds and SRP will commit new capital to Stream’s existing data center land fund to accelerate site development for 650 MW of near-term power capacity across campuses in metro Chicago, Atlanta and Dallas. A newly formed subsidiary of the Apollo Funds will assume the role of investment manager of the land fund. The transaction is subject to customary closing conditions and is expected to be completed in 2025.