Asset management firm Apollo has announced that funds managed by the company are set to acquire a majority stake in Stream Data Centers (SDC) from Stream Realty Partners (SRP).
The financial details of the transaction were not undisclosed.
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SDC specialises in building, leasing, managing, and operating hyperscale data centre campuses. To date, they have delivered more than 20 such campuses. The company currently controls more than 4GW of long-term powered land.
With Apollo’s backing, SDC intends to advance its project pipeline and enable Apollo Funds and its affiliates to invest in digital infrastructure. The company particularly aims to expand its development activities to address the increasing demand from hyperscale cloud and AI providers in major Tier 1 and Tier 2 US markets.
As agreed, the management team at SDC will maintain a minority interest and continue to lead the company.
SDC co-managing partners Michael Lahoud and Paul Moser said: “After more than two decades of delivering exceptional data centre experiences, SDC has created a building and operating model with very strong fundamentals based on collaborative, enduring customer relationships.
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By GlobalData“This symbiotic relationship with Apollo amplifies that existing strength, offering access to the capital required to significantly scale our developments at the rate hyperscale customers demand.”
Since 2022, Apollo-managed funds have allocated around $38bn to next-generation infrastructure investments, including renewable energy, digital platforms, and computing capacity. The firm intends to expand its investment in these sectors significantly, both through Stream and as a capital partner with other market players.
As part of the acquisition, Apollo Funds and SRP will inject new capital into Stream’s existing data centre land fund. This capital is intended to expedite site development for 650MW of near-term power capacity across campuses in Chicago, Atlanta, and Dallas.
A newly formed subsidiary of the Apollo Funds will manage the land fund.
The transaction is expected to be completed in 2025, contingent on customary closing conditions.
