Apollo funds complete majority stake acquisition in Stream Data Centers

NEW YORK - Apollo (NYSE:APO) announced Monday that Apollo-managed funds have completed their previously announced acquisition of a majority interest in Stream Data Centers (SDC), a developer and operator of hyperscale data center campuses across the United States. The $71.11 billion market cap investment manager is currently trading at $124.31, with InvestingPro analysis suggesting the stock is slightly undervalued compared to its Fair Value.

Principal Asset Management is acquiring a minority interest in SDC through a Principal-managed fund, while SDC's management team will retain a minority stake and continue to lead the company.

The transaction positions SDC to accelerate development across its platform and execute on a pipeline exceeding 4 gigawatts of capacity. The company has delivered more than 20 campuses for hyperscale and enterprise customers primarily in Tier 1 data center markets.

"With Apollo Funds' and Principal's support, SDC is now equipped to scale faster and more strategically than ever before," said Michael Lahoud and Paul Moser, Co-Managing Partners of Stream Data Centers, according to the press release.

SDC has substantial power allocations scheduled to come online over the next 12-24 months through its land fund, positioning it to serve growing demand for data usage and compute capacity.

Joseph Jackson and Trevor Mills, Partners at Apollo, stated that SDC is "an essential part of Apollo's strategy to scale our presence in digital infrastructure."

Apollo estimates global data center infrastructure will require several trillion dollars of investment over the next decade, driven by accelerating demand for compute capacity and AI workloads.

Since 2022, Apollo-managed funds and affiliates have deployed over $40 billion into next-generation infrastructure, including renewable energy, digital platforms and compute capacity.

As of June 30, 2025, Apollo had approximately $840 billion of assets under management, while Principal Asset Management managed $601.6 billion in assets as of September 30, 2025.

In other recent news, Apollo Global Management has announced several key developments. The firm has partnered with venture capital firm 8VC to deploy several billion dollars in support of high-growth companies across various sectors, including advanced manufacturing and aerospace. This collaboration aims to provide flexible capital solutions, combining Apollo's financing capabilities with 8VC's expertise in industrial technologies. Additionally, Apollo participated in a $500 million funding round for crypto exchange Kraken, which valued the company at $15 billion. This round included investments from other major financial players like Oppenheimer and Jane Street.

In leadership changes, Apollo appointed Bert Crouch as Partner and Head of Real Estate Equity, where he will lead the firm's real estate strategies. Crouch brings over 20 years of experience in real estate investment, having previously worked at Invesco Real Estate. Moreover, Apollo's new European private equity lead, Alex van Hoek, expressed optimism about buyout potential in Europe, suggesting it might surpass activity in the United States. Lastly, Apollo is reportedly considering joining Skydance Media's David Ellison in a potential $60 billion bid for Warner Bros. Discovery, highlighting its continued interest in media investments.

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