Ares Boosts Data Center Investment to $500M+

Ares Secondaries funds have significantly amplified their financial commitment to Sabey Data Center Properties, LLC (SDCP), pushing their total investment past the substantial $500 million mark. This latest capital infusion represents a deepening of the relationship initiated with an initial minority equity stake in July 2026, underscoring a strong conviction in SDCP's strategic position within the digital infrastructure sector.

SDCP, a prominent player in the data center arena, operates a fully integrated platform managing hyperscale and enterprise facilities across key U.S. markets. The company, a joint venture between the long-established Sabey Corporation (founded in 1971) and National Real Estate Advisors, LLC, which also acts as the investment manager, is a significant owner and operator of mission-critical digital real estate.

Currently, SDCP boasts over four million square feet of operational data center space, representing a considerable 275 megawatts (MW) of power capacity. The company's ambitious expansion plans signal a robust growth trajectory, with a projected pipeline that could reach approximately 737 MW by 2033. This aggressive development strategy is designed to meet the escalating demand for robust digital infrastructure, particularly from the burgeoning cloud computing and artificial intelligence industries.

The strategic alignment of these long-term partners is geared towards fueling SDCP's expansion and enhancing its capacity to serve a growing clientele. As Kevin Verdi, Executive Vice President and Chief Investment Officer at National Real Estate Advisors, stated, the focus remains on "disciplined growth and delivering the digital infrastructure needed to support the next generation of cloud and AI demand." This sentiment highlights the critical role data centers play in enabling advanced technological applications.

This substantial capital commitment from Ares Secondaries arrives at a pivotal moment for the data center industry. The sector is experiencing unprecedented demand driven by AI workloads, cloud migration, and the proliferation of digital services. The U.S. data center market alone is projected to see significant growth, with capacity needs expanding rapidly to accommodate these trends. SDCP, as one of the largest privately held multi-tenant data center owners, developers, and operators in the nation, is well-positioned to capitalize on this market expansion.

The increased investment from Ares Secondaries not only validates SDCP's operational expertise and market strategy but also provides the necessary capital to execute its ambitious development plans. This move is indicative of a broader trend where institutional investors are increasing their allocations to digital infrastructure assets, recognizing their essential role in the modern economy and their potential for stable, long-term returns. The expansion of SDCP's footprint will be crucial in supporting the foundational needs of data-intensive industries.