Key Takeaways
- Sector: Digital Infrastructure.
- Geography: United States.
Analysis
Apollo has announced it has completed a deal to acquire a majority stake in Stream Data Centers (SDC), a fast-growing provider of hyperscale data infrastructure, as the firm deepens its exposure to U.S. digital infrastructure. The acquisition, led by Apollo-managed funds, positions Stream to scale a 4+ gigawatt development pipeline and deploy billions into high-demand hyperscale markets.
The transaction involves the acquisition of equity from Stream Realty Partners (SRP), which will retain a minority interest. SDC’s leadership, including Co-Managing Partners Michael Lahoud and Paul Moser, will continue to run the business alongside Apollo, ensuring strategic continuity.
Based in Dallas, Texas, Stream Data Centers has delivered more than 20 hyperscale campuses and currently controls over 4 gigawatts of powered land across strategic U.S. markets. The company is actively developing sites in metro areas including Chicago, Atlanta and Dallas, with plans to activate 650 megawatts of near-term power capacity.
Joseph Jackson and Trevor Mills, Partners at Apollo, described the deal as a landmark transaction in Apollo’s digital infrastructure strategy. “Stream is uniquely positioned to meet the evolving needs of cloud, AI, and enterprise tech customers,” they said, highlighting the synergy between Apollo’s capital structuring strengths and Stream’s deep development expertise.
Stream’s expansion comes amid surging demand for AI-ready compute infrastructure and scalable cloud data center platforms. Apollo’s long-term capital will allow SDC to accelerate construction timelines and meet the increasingly aggressive timelines of hyperscale tenants.
The move aligns with Apollo’s broader infrastructure thesis, which anticipates trillions in global data center investments over the next decade. Since 2022, Apollo-managed funds have deployed approximately $38 billion into next-gen assets including renewables, semiconductor platforms, and compute infrastructure.
The acquisition also includes a commitment of new capital to Stream’s existing data center land fund, allowing rapid site activation across growth zones. A new Apollo-controlled subsidiary will assume investment management duties for the land fund, signaling Apollo’s intent to embed itself deeply within the data infrastructure value chain.
Comparable to recent moves by firms like DigitalBridge, Stonepeak, and Brookfield Infrastructure, Apollo's investment further validates the institutional appetite for real assets linked to digital transformation. Earlier this year, KKR backed Global Technical Realty to build out campuses in Europe, while Macquarie Asset Management expanded its stake in Aligned Data Centers.
Goldman Sachs & Co. served as financial advisor to Stream, while Akin Gump provided legal counsel. On Apollo’s side, Moelis & Company acted as advisor and Latham & Watkins served as legal counsel.
The deal is subject to customary regulatory approvals and is expected to close later in 2025, marking a milestone in Apollo’s evolution as a top-tier investor in critical digital infrastructure.