Stream Data Centers Acquired by Apollo to Drive Hyperscale Growth

The previously disclosed acquisition of a majority stake in Stream Data Centers, a top developer and operator of hyperscale data center campuses across the US, has been finalized by investor Apollo Funds. Principal Asset Management is using a Principal-managed fund to purchase a minority stake in SDC as part of the deal.   The management group of SDC will keep a minority ownership and continue to run the business. 

SDC, a crucial operational platform in Apollo’s ecosystem, is well-positioned to scale development throughout its platform and carry out a 4+ gigawatt pipeline that serves the most advanced technology and artificial intelligence infrastructure users worldwide. For major hyperscale and enterprise clients, mostly in Tier 1 data center markets, the company has so far supplied over 20 campuses.  

Data Center Sector Potential

With a well-capitalized land fund with significant power allocations coming up in the next 12 to 24 months, Apollo thinks SDC is in a good position to meet the needs of the quickly expanding data usage and compute capacity market.

Joseph Jackson and Trevor Mills, partners at Apollo, stated that SDC is a crucial component of the company’s plan to increase its footprint in digital infrastructure. “We look forward to helping the company continue to grow as a scaled provider of next-generation capacity for customers in key U.S. markets, including hyperscale and AI.”

“Our longstanding partnership with SDC reflects our deep commitment to supporting critical infrastructure, as Principal has long recognized the transformative potential of the data center sector,” stated Senior Managing Directors John Berg and Devin Chen of Principal. “We are thrilled to work with Apollo to continue assisting SDC’s growth.”

Co-Managing Partners Michael Lahoud and Paul Moser of Stream Data Centers stated, “SDC is now prepared to scale quicker and more strategically than ever before with the help of Apollo Funds and Principal. We are pleased to be in a strong position to supply transformative capacity where it is most needed, especially as the demand for AI and hyperscale infrastructure continues to rise. 

Due to the growing demand for compute capacity and AI workloads, Apollo predicts that investments in global data center infrastructure will total several trillion dollars over the course of the next ten years.

Since 2022, more than $40 billion has been invested in next-generation infrastructure, such as compute power, digital platforms, and renewable energy, by Apollo-managed funds and affiliates. Through Stream Data Centers and as a capital partner to other market participants, the company intends to greatly expand its engagement in these areas over the next several years.