August 6, 2025 – Apollo Global Management has entered into an agreement to acquire a majority interest in Stream Data Centres, a move that sets the US private equity firm up to take advantage of the exploding demand for digital infrastructure fuelled by artificial intelligence (AI), hyperscalers, and cloud computing.
The Apollo deal, announced on Wednesday, has Apollo-managed funds acquire Stream Data Centres (SDC) from Stream Realty Partners, which will have a minority stake along with current management. The terms of the deal were not made public, but Apollo stated that the deal will be supported by “billions of dollars of new capital” to grow SDC’s pipeline and portfolio.
STREAM DATA CENTRES
Stream Data Centres presently owns over 4 gigawatts of powered land in North America, where development plans are under way in Chicago, Dallas, and Atlanta. Stream plans to bring online 650 megawatts of near-term power capacity, which is essential for supporting hyperscale customers like Amazon, Microsoft, and Google, who increasingly outsource major-scale data centre construction.
Apollo explained that the investment aimed to create a “scaled digital infrastructure leader” capable of meeting worldwide demand. Industry estimates suggest the sector may need up to $6.7 trillion of investment globally by 2030, with data centres forming the underpinnings of AI models as well as consumer-facing cloud services.
Over the past few years, hyperscaler demand has overwhelmed the capacity of stand-alone developers to deliver land, power, and build at scale. SDC’s portfolio is considered strategically positioned in markets with assured energy access and nearness to leading tech centres.
APOLLO: STRATEGIC FIT
Apollo, with more than $700 billion in assets under management, has consistently grown its exposure to infrastructure and energy transition investing. The Stream deal provides it with a presence in an area where institutional players like Blackstone, KKR, and Brookfield have already made multibillion-dollar wagers.
With this investment, we are building one of the largest private digital infrastructure platforms in North America,” Apollo said in a statement. “The deal brings together our global capital resources and Stream’s established development capabilities to provide essential capacity for hyperscale and enterprise customers.
Stream’s management will remain in the hands of co-managing partners Rob Kennedy and Michael Lahoud, who will keep the company operating, maintaining relationships with key tenants and energy suppliers.
The deal remains subject to regulatory approval and is expected to close later in 2025. Apollo was advised by Moelis & Company and Latham & Watkins LLP, while Stream Data Centres worked with Goldman Sachs & Co. and Akin Gump Strauss Hauer & Feld LLP.
The deal also includes a capital contribution to Stream’s data centre land investment fund, which is jointly managed with Stream Realty Partners. The vehicle will now be managed by a new Apollo subsidiary and is set to step up build-outs in core US markets.
The transaction highlights the way that private equity companies are competing to get long-term exposure to digital infrastructure, which is universally regarded as the “real estate” of the AI age. In contrast to conventional property assets, data centres provide revenues through multi-year deals with hyperscalers, providing investors with both stable cash flows and hefty growth prospects.
APOLLO: FINANCIAL AND ADVISORY DETAILS
For Apollo, the transaction is also a matter of diversification. Apollo, by growing in an area with demand that is exponential, is insuring against volatility in more cyclical segments of its portfolio. The Stream platform, analysts say, could be used as a springboard for growth in Latin America and Europe, where AI-fuelled demand is also on the rise.
As adoption of AI picks up speed, the world economy’s reliance on computing capacity will only increase. With Apollo’s funding, Stream Data Centres will be able to get land, power, and permits more quickly, three of the biggest bottlenecks in the business.
The Apollo deal reflects a larger pattern: the intersection of private capital and digital infrastructure with the AI boom. As one industry analyst puts it, “Owning data centres today is like owning oil fields in the 20th century – control of the backbone that powers the economy.” For Apollo, it is not only about size; for Apollo, it is about getting a seat at the centre of the digital revolution transforming sectors globally.
Do Follow:https://theworldfinancialforum.com/participate/
https://www.ft.com/content/1391b1ff-2ce8-4f9e-b63f-7cf5c918047b