Apollo has acquired a majority interest in Stream Data Centers (SDC), marking a significant move into digital infrastructure as demand for hyperscale capacity surges amid rapid advances in artificial intelligence and cloud computing, according to a report by Reuters.
Stream, a developer and operator of large-scale data centre campuses across North America, has delivered over 20 facilities to date and maintains a pipeline with multi-gigawatt capacity, Apollo said in a statement on Wednesday. Financial terms were not disclosed.
The transaction positions Apollo to scale capital deployment into next-generation digital infrastructure, with the firm indicating it could potentially allocate billions to support the build-out of data capacity globally. The deal is aligned with Apollo’s growing emphasis on long-term thematic investing across private equity and credit.
Jim Zelter, Co-President of Apollo, recently noted the data centre build-out could require $1.5tn in external financing by 2030 – of which $800bn may be met through private credit, an area where Apollo holds a leading market position.
Big Tech’s capital commitments underscore the scale of the opportunity. Meta recently raised its capex guidance to as much as $72bn, while Microsoft and Alphabet are on track for annual infrastructure investments approaching $120bn and $85bn, respectively, as they scale their AI and cloud platforms.
Apollo is betting that hyperscalers will increasingly rely on third-party developers like Stream to secure land, regulatory approvals, and access to power – resources that remain key constraints on future capacity.
