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Apollo Acquires Majority Stake in Stream Data Centers to Capitalize on AI-Driven Infrastructure Growth

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Apollo has agreed to buy a majority interest in Stream Data Centers (SDC) as part of a strategic bet on the booming demand for digital infrastructure driven by artificial intelligence and cloud computing. Data centers, critical hubs housing computing hardware, are expected to see global spending of up to $6.7 trillion by 2030, according to McKinsey.

Stream Data Centers specializes in building, leasing, and managing large-scale data center campuses. It has completed over 20 projects and has an extensive pipeline with multi-gigawatt capacity. Apollo aims to scale SDC to become a key partner for major hyperscalers like Amazon, Microsoft, and Google, who increasingly rely on third-party developers for land acquisition, regulatory approvals, and power sourcing for their data centers.

Apollo partner Trevor Mills emphasized the ongoing and diverse demand from hyperscalers requiring collaboration with external developers. This investment aligns with rising capital expenditures by tech giants — Meta recently raised its annual spending forecast by $2 billion to as much as $72 billion, Microsoft plans over $30 billion in its fiscal first quarter, and Alphabet increased its 2024 capex target to $85 billion, with further rises expected to meet AI demands.

While financial terms were not disclosed, Apollo’s president Jim Zelter highlighted that data centers will need $1.5 trillion in external financing by 2030, with private credit accounting for $800 billion — a space where Apollo leads. The International Energy Agency forecasts electricity demand for data centers will more than double by then, surpassing Japan’s current total consumption.

Other major asset managers like Blackstone, KKR, and BlackRock have also committed billions to data center investments, underscoring the sector’s growing importance. Stream Data Centers’ management will retain a minority stake and continue running operations post-deal.

Microsoft saves $500 million with AI amid job cuts, Bloomberg reports

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Microsoft (MSFT.O) saved over $500 million last year in its call centers alone by leveraging artificial intelligence, Bloomberg News reported Wednesday. This comes as the tech giant announced plans to cut nearly 4% of its workforce to control costs amid heavy investments in AI infrastructure. In May, Microsoft disclosed layoffs affecting around 6,000 employees.

AI tools have boosted productivity across various departments, including sales, customer service, and software engineering. According to Microsoft’s Chief Commercial Officer Judson Althoff, AI is now managing interactions with smaller customers, a nascent effort already generating tens of millions of dollars in savings, Bloomberg reported citing an insider.

Althoff also revealed that AI contributed to 35% of the code for new products, speeding up launch times. Microsoft declined to comment on the report when contacted by Reuters.

This fiscal year, Microsoft has allocated $80 billion in capital spending, primarily to expand data centers to address capacity constraints for AI services. As big tech companies ramp up AI investments, they are simultaneously cutting costs in other areas to maintain profitability.

Reliance Jio Postpones IPO Beyond 2025 as It Focuses on Growth and Expansion

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Indian telecom and digital powerhouse Reliance Jio Platforms, led by billionaire Mukesh Ambani, has decided to delay its much-anticipated initial public offering (IPO) beyond this year, according to sources familiar with the matter. The postponement pushes back one of India’s largest planned stock offerings as Jio aims to strengthen its revenue base, grow its subscriber count, and expand its digital services before going public.

Jio Platforms is valued by analysts at over $100 billion. Its telecom arm, Reliance Jio Infocomm, remains the dominant contributor to Jio’s $17.6 billion annual revenue, accounting for nearly 80%. Despite a recent subscriber churn linked to price hikes, the company has returned to growth this year with more than 488 million users. Meanwhile, Jio is rapidly developing niche digital ventures in AI, apps, and connected devices.

The delay disappointed the market as shares of Reliance Industries, Jio’s parent company, fell as much as 1.8% in Mumbai following the Reuters report, wiping out approximately $6 billion in market value. Reliance closed the day down 1.2%, weighing on the broader Indian stock market.

Sources said that Jio had not yet appointed bankers to manage the IPO process, underscoring that the company wants its business to be more mature before listing. Earlier, Ambani had indicated a five-year timeline from 2019 for listings of both Jio and Reliance Retail, the parent’s retail arm. The Reliance Retail IPO is expected to be delayed further, unlikely before 2027 or 2028.

Jio also faces growing competition as Elon Musk’s Starlink internet service prepares to launch in India soon. Jio counts major global investors Google and Meta among its backers and has partnered with Nvidia to build AI infrastructure.

Brokerages have trimmed profit forecasts for Jio due to higher costs and anticipated price increases by late 2025, cutting its valuation from $117 billion to $111 billion, though some analysts value it even higher.

India remains one of the world’s biggest IPO markets, raising $5.86 billion in the first half of 2025. Market jitters from trade tensions and Middle East instability have moderated but are gradually easing.

Ambani has raised around $25 billion in investments from global firms including KKR, Abu Dhabi Investment Authority, General Atlantic, and Silver Lake to fuel growth across his digital, telecom, and retail ventures.

One source emphasized that investors remain patient, confident in the company’s long-term prospects despite the IPO delay: “They know the money is sitting in front of them.”