Apollo Buys Hyperscale Data Center Developer

Market Trends & Investment Opportunities - Apollo is acquiring a majority stake in Stream Data Centers, capitalizing on the booming demand for digital infrastructure [1] - Alternative asset managers are investing heavily in data centers and data providers due to the rise of AI and the increasing demand for power and data [2] - Apollo's investment in Stream Data Centers follows a broader trend of investment firms acquiring digital infrastructure and renewable energy assets, exemplified by Apollo's earlier acquisition of Argo Infrastructure Partners [3] - The industry anticipates continued growth in demand for data centers driven by the ongoing expansion of artificial intelligence [5] Financial Performance & Business Strategy - Digital Bridge's revenue nearly tripled from 2022 to 2024, demonstrating the potential for significant growth in the data center sector [6] - Digital Bridge turned profitable, generating hundreds of millions of dollars in the last 12 months [6] - The industry is considering the potential benefits of owning both the energy supply and the data center to manage costs and improve margins [4] Key Considerations - The industry is focused on how data centers will manage rising power costs and whether these costs will be passed on to customers [4] - Contractual terms related to power costs are a key area of interest for the industry [3][4]