Apollo is acquiring a majority stake in US data centre company Stream Data Centers (SDC) from Stream Realty Partners (SRP).
The investment firm, through its funds, has acquired the undisclosed stake in SDC, and will own the company alongside SDC’s management team, which will retain a minority interest and continue to lead the business.
SDC, which builds, leases, manages and operates hyperscale data centres, has delivered more than 20 campuses to date. The company currently controls over 4GW of long-term powered land and has a development pipeline.
As part of the deal, the Apollo funds and SRP will commit new capital to SDC’s existing data centre land fund. This will accelerate site development for 650MW of near-term power capacity across campuses in the Chicago, Atlanta and Dallas metro areas.
Also, a new subsidiary of the Apollo funds will take on the role of investment manager for the land fund.
Joseph Jackson and Trevor Mills, partners at Apollo, said: “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.”
Michael Lahoud and Paul Moser, co-managing partners of Stream Data Centers, said, “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 centre 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.”
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