Funds managed by Apollo Global Management have agreed to purchase one of the nation’s largest hydroelectric power providers, the latest in a series of big investments in data centers and the facilities that fuel them.
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The Apollo funds agreed to purchase Eagle Creek Renewable Energy, which owns 85 hydroelectric facilities across 18 states, the companies announced Monday. The firm's facilities produce nearly 700 megawatts of electricity, enough to power more than 260,000 homes.
The deal is expected to be finalized in the first quarter, following regulatory approvals. The financial terms weren't disclosed.
“We see significant opportunity to support the business in its next phase — further expanding the platform and providing reliable, clean power generation to meet the growth in demand,” Apollo partner Joseph Romeo said in a statement.
Investment giants like Apollo have increasingly focused on data centers and energy production as Big Tech firms pour hundreds of billions into building out facilities to support artificial intelligence.
Apollo has spent $59B on energy-related investments since 2022, it said in a release.
The company in August agreed to purchase a majority stake in Stream Data Centers from Stream Realty Partners, with plans to build out a multigigawatt pipeline. Stream has built more than 20 data centers and controlled more than 4 GW worth of long-term powered land as of August.
In June, the Financial Times reported that Apollo was in discussions with Meta about a $29B data center fund. Other big investment players involved included KKR & Co., Brookfield and Carlyle Group.
Investment in the hydroelectric power space has grown as these firms look for new clean energy sources to power data centers. Google and Brookfield this summer committed to investing $3B in two Lancaster County, Pennsylvania, hydroelectric plants.
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