Apollo funds to acquire majority stake in Stream Data Centers

NEW YORK/DALLAS - Apollo Global Management (NYSE:APO), a prominent financial services player with an $83.18 billion market capitalization and "GOOD" financial health rating according to InvestingPro, announced Wednesday that funds managed by the firm have agreed to acquire a majority interest in Stream Data Centers (SDC) from Stream Realty Partners.

The transaction will position SDC to execute on its multi-gigawatt development pipeline while enabling Apollo funds to potentially deploy billions of dollars into digital infrastructure. With liquid assets exceeding short-term obligations and a robust revenue base of $24.39 billion in the last twelve months, Apollo demonstrates strong financial capacity for this expansion. SDC’s management team will retain a minority stake and continue leading the business.

Stream Data Centers builds and operates hyperscale data center campuses, having delivered more than 20 campuses to date. The company controls over 4 gigawatts of powered land and has a substantial near-term development pipeline across key U.S. markets.

As part of the deal, Apollo funds and Stream Realty Partners will commit new capital to Stream’s existing data center land fund to accelerate site development for 650 MW of near-term power capacity across campuses in Chicago, Atlanta and Dallas markets.

"With deep development expertise and a valuable long-term land fund in key growth markets, we believe SDC is uniquely positioned to serve the infrastructure needs of the world’s most sophisticated technology customers," said Apollo Partners Joseph Jackson and Trevor Mills in a statement.

Michael Lahoud and Paul Moser, Co-Managing Partners of Stream Data Centers, noted the partnership comes amid robust demand for data center solutions.

Apollo estimates data centers will require several trillion dollars of global investment over the next decade. Since 2022, Apollo-managed funds have deployed approximately $38 billion into next-generation infrastructure investments. Currently trading at $145.54, Apollo shows slight undervaluation according to InvestingPro’s Fair Value analysis, with 10 additional ProTips available to subscribers. For deeper insights into Apollo’s investment strategy and financial metrics, access the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.

The transaction is subject to customary closing conditions and is expected to be completed in 2025, according to the press release.

In other recent news, Apollo Global Management reported impressive financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share of $1.92, exceeding the forecast of $1.84, and reported revenue of $6.81 billion, which was significantly higher than the anticipated $4.57 billion. Additionally, Apollo Global Management has agreed to acquire a majority stake in Stream Data Centers, marking its first venture into the digital infrastructure sector. This acquisition aligns with the growing demand driven by artificial intelligence, allowing Apollo-managed funds to potentially invest billions in digital infrastructure. These developments underscore Apollo Global Management’s strategic moves and financial performance in the current market environment.

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