Apollo acquires majority stake in Stream Data Centers to capitalize on $6.7 trillion AI infrastructure boom

Apollo is doubling down on digital infrastructure.

The alternative asset manager has agreed to buy a majority interest in Stream Data Centers (SDC), betting that the demand for data storage and computing capacity will continue to soar as AI and cloud adoption reshape nearly every industry.

The deal was announced Wednesday, as investors continue pouring billions into data centers—the physical backbone of AI, cloud, and big data operations. And the spending shows no signs of slowing. By 2030, global investment in data centers could reach $6.7 trillion, according to a McKinsey estimate. That projection is driving a wave of activity from private equity giants who see opportunity in the infrastructure behind the AI boom.

Commenting on the deal, Apollo Partners Joseph Jackson and Trevor Mills called it a “landmark digital infrastructure transaction,” and pointed to SDC’s long-term land fund and development capabilities in key growth markets.

“We believe SDC is uniquely positioned to serve the infrastructure needs of the world’s most sophisticated technology customers,” they said. “Apollo will bring scaled capital and structuring capabilities to help drive recurring origination across our ecosystem.”

Based in the U.S., Stream Data Centers builds, leases, manages, and operates massive data campuses, with over 20 delivered so far. “With Apollo’s backing, SDC is positioned to execute on a multi-gigawatt pipeline, while enabling Apollo Funds and affiliates to potentially deploy billions of dollars into next-generation digital infrastructure,” the firm said in a statement.

The news comes just two days after Apollo led GeoWealth’s $38 million Series C round to expand private market access for advisors—another sign the firm is actively placing bets across a wide spectrum of high-growth infrastructure and fintech plays.

The move follows a broader pattern. Blackstone spent $10 billion in 2021 to take QTS private. KKR, BlackRock, and other firms have made similar bets on the space, as the energy-hungry needs of AI models push hyperscalers to lock in new infrastructure.

SDC’s management team isn’t going anywhere. They’ll retain a minority stake and continue leading the business under Apollo’s majority ownership.

With AI pushing demand for compute to new heights, the people financing that growth are shifting from tech companies to private capital. Apollo’s latest deal signals just how much conviction big money has in the physical infrastructure behind the digital future.

Stream Data Centers