Apollo Global Management, a US-based investment firm, has agreed to acquire a majority stake in Stream Data Centers from Stream Realty Partners.

Stream Data Centers, based in the US, builds, leases, and operates hyperscale data center campuses, with over 20 completed projects and more than 4 gigawatts of powered land under control.

The company’s management will retain a minority stake and continue to lead operations after the acquisition.

Apollo and Stream Realty Partners will also commit new capital to accelerate the development of 650 megawatts of data center capacity in Chicago, Atlanta, and Dallas.

A new Apollo subsidiary will take over as investment manager of Stream’s land fund.

The deal is subject to closing conditions and is expected to complete in 2025.

🔗 Source: Apollo

🧠 Food for thought

1️⃣ Data center investments require massive capital as AI drives unprecedented demand

Apollo’s acquisition reflects the enormous capital requirements in today’s data center market, where global investment needs have reached unprecedented levels.

The global data center market was valued at $248.72 billion in 2023 and is projected to reach $584.86 billion by 2032, representing an 11.7% compound annual growth rate1.

Industry estimates suggest $170 billion in asset value will require financing in 2025 alone, with 10 gigawatts of new data center capacity expected to break ground2.

This massive capital requirement stems from AI workloads demanding significantly more power than traditional computing, forcing operators to redesign infrastructure approaches3.

Apollo’s estimate of “several trillion dollars of global investment over the next decade” aligns with these projections, explaining why the firm has already deployed $38 billion into next-generation infrastructure since 2022.

2️⃣ Power access becomes the critical competitive advantage in site selection

Stream Data Centers’ “over 4 gigawatts of long-term powered land” represents a strategic asset as power availability increasingly determines data center viability.