What's Happening?
Apollo Global Management has acquired a majority stake in Stream Data Centers (SDC) to address the increasing demand for data centers in the United States. The acquisition aims to leverage Apollo's financial resources to expand SDC's operations, which currently include over 20 campuses and a significant pipeline of projects. SDC plans to use the investment to develop its infrastructure to meet the needs of hyperscale cloud and AI providers across major U.S. markets. The deal is expected to close within the year, with SDC's management retaining a minority stake and continuing to lead the company.
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Why It's Important?
The acquisition highlights the growing importance of digital infrastructure as demand for data centers surges, driven by the expansion of cloud computing and AI technologies. Apollo's investment underscores the need for substantial capital to support this growth, with estimates suggesting trillions of dollars will be required globally over the next decade. This move positions Apollo to capitalize on the digital infrastructure boom, potentially deploying billions into next-generation facilities. The partnership with SDC allows Apollo to tap into a market that is critical for supporting technological advancements and economic growth.
What's Next?
With Apollo's backing, SDC is poised to accelerate its development projects, particularly in key markets like Chicago, Atlanta, and Dallas. The focus will be on expanding power capacity and building new data centers to meet the increasing demands of hyperscale customers. This strategic expansion is expected to enhance SDC's ability to serve sophisticated technology clients and drive significant growth in the digital infrastructure sector.
