Apollo Acquires Stream Data Stake to Drive AI Infrastructure Growth

• Apollo acquires majority stake in Stream Data Centers to meet AI-driven digital infrastructure demand.
• Stream Data Centers has delivered over 20 campuses with a multi-gigawatt project pipeline.
• Hyperscalers rely on developers like SDC for land, approvals, and power for data centers.

Apollo, a leading alternative asset manager, announced its acquisition of a majority interest in Stream Data Centers, capitalizing on the surging demand for digital infrastructure driven by artificial intelligence and cloud computing. The deal positions Apollo to tap into the rapidly growing data center market, projected by McKinsey to require global investments of up to $6.7 trillion by 2030.

Stream Data Centers specializes in building, leasing, managing, and operating large-scale data center campuses. According to Apollo, having delivered over 20 projects, SDC boasts a robust pipeline with "multi-gigawatt" capacity.

 The company is looking to expand SDC into the hyper-scale market, giant cloud providers such as Amazon, Microsoft and Google, which depend on external development of land, regulatory and obtaining large quantities of power.

Trevor Mills, a partner at Apollo, emphasized SDC’s strategic value, stating, “We think we can scale them up, making the company essential to hyperscalers’ diverse needs.” This acquisition allows Apollo to deploy significant capital into next-generation digital infrastructure, though financial terms were not disclosed.

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The data center sector is witnessing unprecedented investment. Meta recently increased its 2024 capital expenditure forecast to $66 billion-$72 billion, with CEO Mark Zuckerberg committing to substantial AI data center investments.

Microsoft anticipates spending over $30 billion in its fiscal first quarter, potentially reaching $120 billion annually, while Alphabet raised its 2024 capex target to $85 billion, with plans for further increases in 2025. The International Energy Agency predicts global data center electricity demand will more than double by 2030, exceeding Japan’s current consumption.

Apollo’s president, Jim Zelter, noted that data centers could require $1.5 trillion in external financing, with $800 billion potentially from private credit, where Apollo holds a leading position. Other asset managers, including Blackstone, KKR, and BlackRock, are also heavily investing in the sector. SDC’s management will retain a minority stake and continue leading operations, ensuring continuity and expertise.