Latest news with #StreamDataCenters
Reuters
2 days ago
- Business
- Reuters
Apollo buys Stream Data Centers in bet on AI infrastructure boom
NEW YORK, Aug 6 (Reuters) - Apollo (APO.N), opens new tab agreed to buy a majority interest in Stream Data Centers (SDC), the alternative asset manager said on Wednesday, in a bet on rising demand for digital infrastructure fueled by artificial intelligence and cloud computing. Big Tech companies and outside investors are pouring money into data centers as demand for computing power soars. The physical sites for computing machines and other hardware could require spending of up to $6.7 trillion worldwide by 2030, consultancy McKinsey estimates. SDC builds, leases, manages and operates huge campuses. It has delivered more than 20 to date and has a pipeline of projects with "multi-gigawatt" capacity, Apollo said in a statement. Apollo is betting that so-called hyperscalers - large cloud service providers like Amazon (AMZN.O), opens new tab, Microsoft (MSFT.O), opens new tab and Google - will continue to rely on outside developers to find the land they need to build data centers, get regulatory approvals for it, and secure sources to cover their vast power needs. "Part of the strategic value of Stream is that we think we can scale them up, and make the company important to each one of the hyperscalers," Trevor Mills, a partner at Apollo, told Reuters. Those large companies "are always going to have needs and different demand pockets where they're going to need to work with a developer," Mills said. Meta recently raised the lower end of its annual capital spending forecast by $2 billion to $66 billion–$72 billion, with CEO Mark Zuckerberg pledging to invest hundreds of billions of dollars in AI data centers. Microsoft expects to spend more than $30 billion in its fiscal first quarter alone — a pace that would put annual outlays near $120 billion — while Alphabet has lifted its 2024 capex target to about $85 billion and signaled further increases next year to meet surging AI demand. Apollo said the deal allowed it to "potentially deploy billions of dollars into next-generation digital infrastructure", but did not disclose the financial terms. The firm's president Jim Zelter said on Tuesday data centers would require $1.5 trillion in external financing, and $800 billion of this could come from private credit, where Apollo is a market leader. The International Energy Agency forecasts electricity demand for data centers worldwide will more than double by 2030, surpassing the amount that the entire country of Japan consumes today. Other asset managers, including Blackstone (BX.N), opens new tab, KKR (KKR.N), opens new tab and BlackRock (BK.N), opens new tab, have committed billions of dollars to the sector. Blackstone spent $10 billion to take data center operator QTS private in 2021. SDC's management team will maintain a minority stake and keep leading the business, Apollo said.
CNA
2 days ago
- Business
- CNA
Apollo buys Stream Data Centers in bet on AI infrastructure boom
NEW YORK : Apollo agreed to buy a majority interest in Stream Data Centers (SDC), the alternative asset manager said on Wednesday, in a bet on rising demand for digital infrastructure fueled by artificial intelligence and cloud computing. Big Tech companies and outside investors are pouring money into data centers as demand for computing power soars. The physical sites for computing machines and other hardware could require spending of up to $6.7 trillion worldwide by 2030, consultancy McKinsey estimates. SDC builds, leases, manages and operates huge campuses. It has delivered more than 20 to date and has a pipeline of projects with "multi-gigawatt" capacity, Apollo said in a statement. Apollo is betting that so-called hyperscalers - large cloud service providers like Amazon, Microsoft and Google - will continue to rely on outside developers to find the land they need to build data centers, get regulatory approvals for it, and secure sources to cover their vast power needs. "Part of the strategic value of Stream is that we think we can scale them up, and make the company important to each one of the hyperscalers," Trevor Mills, a partner at Apollo, told Reuters. Those large companies "are always going to have needs and different demand pockets where they're going to need to work with a developer," Mills said. Meta recently raised the lower end of its annual capital spending forecast by $2 billion to $66 billion–$72 billion, with CEO Mark Zuckerberg pledging to invest hundreds of billions of dollars in AI data centers. Microsoft expects to spend more than $30 billion in its fiscal first quarter alone — a pace that would put annual outlays near $120 billion — while Alphabet has lifted its 2024 capex target to about $85 billion and signaled further increases next year to meet surging AI demand. Apollo said the deal allowed it to "potentially deploy billions of dollars into next-generation digital infrastructure", but did not disclose the financial terms. The firm's president Jim Zelter said on Tuesday data centers would require $1.5 trillion in external financing, and $800 billion of this could come from private credit, where Apollo is a market leader. The International Energy Agency forecasts electricity demand for data centers worldwide will more than double by 2030, surpassing the amount that the entire country of Japan consumes today. Other asset managers, including Blackstone, KKR and BlackRock, have committed billions of dollars to the sector. Blackstone spent $10 billion to take data center operator QTS private in 2021.
Yahoo
3 days ago
- Business
- Yahoo
Apollo Buys Hyperscale Data Center Developer
Apollo is agreeing to buy a majority stake in the hyperscale data center developer Stream Data Centers. The alternate asset manager is trying to capitalize on booming demand for digital infrastructure. Bloomberg's Katherine Doherty joined Wall Street Beat on Bloomberg Open Interest to talk about the move.
Bloomberg
3 days ago
- Business
- Bloomberg
Apollo Buys Hyperscale Data Center Developer
Apollo is agreeing to buy a majority stake in the hyperscale data center developer Stream Data Centers. The alternate asset manager is trying to capitalize on booming demand for digital infrastructure. Bloomberg's Katherine Doherty joined Wall Street Beat on Bloomberg Open Interest to talk about the move. (Source: Bloomberg)
Yahoo
3 days ago
- Business
- Yahoo
Apollo Funds agrees to buy majority stake in Stream Data Centers
(Reuters) -Apollo said on Wednesday that funds managed by it had agreed to buy a majority interest in Stream Data Centers (SDC), as part of a bet on rising demand for digital infrastructure fueled by artificial intelligence and cloud computing. "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 company said in a statement.
