What's Happening?
Apollo Global Management has acquired a majority stake in Stream Data Centers (SDC) from Stream Realty Partners, aiming to scale the business to meet growing data center demand in the U.S. Financial terms of the deal were not disclosed. SDC operates over 20 campuses and controls more than 4 GW of long-term powered land. With Apollo's backing, SDC plans to expand development to cater to hyperscale cloud and AI providers across key U.S. markets. Apollo intends to deploy billions into next-generation digital infrastructure through SDC.
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Why It's Important?
The acquisition of SDC by Apollo highlights the increasing demand for digital infrastructure driven by cloud computing and AI technologies. As data centers require substantial investment, Apollo's move positions SDC to capitalize on this growth, potentially leading to enhanced service offerings and increased capacity. This transaction underscores the strategic importance of data centers in supporting technological advancements and the digital economy, with Apollo leveraging its capital and structuring capabilities to drive development.
What's Next?
SDC's management team will continue to lead the business, retaining a minority stake. Apollo expects the transaction to close this year, with plans to accelerate site development for 650 MW of near-term power capacity at data center campuses in Chicago, Atlanta, and Dallas. The partnership with Apollo provides SDC access to capital needed to scale developments at the rate demanded by hyperscale customers, potentially leading to significant growth in the data center sector.
