Apollo Acquires Majority Stake in Stream Data Centers for 380 Billion Investment

Apollo Global Management has agreed to acquire a majority stake in Stream Data Centers (SDC), marking its first significant investment in the data center sector. This move is driven by the growing demand for digital infrastructure, fueled by advancements in artificial intelligence and cloud computing. The acquisition is part of Apollo's strategy to capitalize on the increasing need for robust digital infrastructure, which is essential for supporting the rapid growth of AI and cloud services.

The management team of SDC will retain a minority stake in the company. The transaction is expected to be completed by the end of this year, although the financial terms have not been disclosed. This acquisition highlights Apollo's commitment to leveraging the growing demand for digital infrastructure, a critical component of modern infrastructure due to the increasing computational needs of AI and cloud computing.

SDC specializes in the construction, leasing, management, and operation of large data center campuses. The company has collaborated with multiple investors to develop over 20 data center campuses. The partnership with Apollo is expected to drive the expansion of SDC's data center operations in key locations such as Chicago, Atlanta, and Dallas.

Apollo's managed funds have already invested approximately 380 billion in next-generation infrastructure projects since 2022. These investments span various sectors, including renewable energy and digital platforms. In January of this year, Apollo agreed to acquire Argo Infrastructure Partners, a company focused on investing in digital infrastructure, renewable energy, transportation, and other industries.

The acquisition of SDC by Apollo underscores the growing importance of data centers in the digital age. As AI and cloud computing continue to evolve, the demand for reliable and efficient data centers will only increase. Apollo's investment in SDC is a strategic move to position itself at the forefront of this rapidly growing industry, ensuring that it can meet the infrastructure needs of the future.