Apollo Global Management has agreed to acquire a majority interest in Stream Data Centers from Stream Realty Partners with plans to add 650 megawatts of new hyperscale capacity in Chicago, Atlanta and Dallas. The transaction is expected to close later this year, although terms were not disclosed.<\/p>\n
Founded in 1999, Dallas-based Stream builds, leases, and operates large-scale data center campuses and has delivered more than 20 facilities nationwide. Its current portfolio includes active hyperscale campuses in: Elk Grove Village, Ill., where the company operates its completed Chicago I facility at 2080 Lunt Ave. and the Chicago II facility at 1925 Busse Road; in Chaska, Minn., with the operational Minneapolis II facility at 1706 West Creek Lane; and in Goodyear, Ariz., where its six-building Phoenix campus at 2950 South Litchfield Road includes one facility in operation and a second under construction with additional phases planned. Stream also reports development activity in northern Virginia, California, and Colorado, and controls more than four gigawatts of long-term powered land across U.S. data center markets.<\/p>\n
Apollo partners Joseph Jackson and Trevor Mills called the deal \u201ca landmark digital infrastructure transaction for Apollo,\u201d adding:<\/p>\n
“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\u2019s most sophisticated technology customers. Apollo will bring scaled capital and structuring capabilities to help drive recurring origination across our ecosystem. We look forward to partnering with SDC as a key operating platform to deliver next-gen capacity at scale.”<\/p>\n
As part of the agreement, Apollo and Stream Realty Partners will add capital to Stream\u2019s existing land fund to accelerate site acquisition and development with a newly formed Apollo subsidiary set to manage the fund. Goldman Sachs & Co. advised Stream on the transaction, while Moelis & Company advised Apollo.<\/p>\n