Apollo announced that its managed funds have agreed to acquire a majority stake in Stream Data Centers (SDC) from Stream Realty Partners. The acquisition positions SDC to develop a multi-gigawatt pipeline of data centers, with Apollo-managed funds ready to deploy billions of dollars into next-generation digital infrastructure.
SDC’s management team will maintain a minority stake and continue to lead the company. With Apollo’s backing, SDC plans to expand its development efforts to meet the growing demand from hyperscale cloud and AI providers in key U.S. markets.
The deal also includes a commitment of new capital from both Apollo and Stream Realty Partners to accelerate the development of 650 MW of power capacity across campuses in Chicago, Atlanta, and Dallas. The transaction is expected to close in 2025.
Support: Goldman Sachs acted as sole financial advisor to Stream Data Centers, while Akin Gump Strauss Hauer & Feld served as legal counsel. Moelis & Company served as the financial advisor to the Apollo Funds on the transaction, while Latham & Watkins provided legal counsel.
KEY QUOTES:
“Stream Data Centers represents a landmark digital infrastructure transaction for Apollo. With deep development expertise and a valuable long-term land fund in key growth markets, we believe SDC is uniquely positioned to serve the infrastructure needs of the world’s most sophisticated technology customers. Apollo will bring scaled capital and structuring capabilities to help drive recurring origination across our ecosystem. We look forward to partnering with SDC as a key operating platform to deliver next-gen capacity at scale.”
Apollo Partners Joseph Jackson and Trevor Mills
“We are excited to partner with Apollo on the next phase of SDC’s growth amid robust demand for data center solutions. After more than two decades of delivering exceptional data center experiences, SDC has created a building and operating model with very strong fundamentals based on collaborative, enduring customer relationships. 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. We look forward to working with the Apollo team to execute on our pipeline — and we extend our sincere gratitude to SRP for providing the firm foundations that have helped SDC become the organization it is today.”
Michael Lahoud and Paul Moser, Co-Managing Partners of Stream Data Centers
