Ares pushes investment in Sabey data centers past $500M
What's the deal? Ares SecondariesDealroom has a profile for this one. Try Dealroom → funds have expanded their equity stake in Sabey Data Center Properties (SDCP)Dealroom has a profile for this one. Try Dealroom →, bringing AresDealroom has a profile for this one. Try Dealroom →' total investment to more than $500 million. The follow-on commitment, announced October 5, 2026, builds on a minority equity investment first disclosed in July 2026.
What's SDCP? It is a fully integrated platform that owns, develops, and operates hyperscale and enterprise data center campuses across top-tier US markets. The company runs more than four million square feet of space, making it one of the largest privately owned multi-tenant data center operators in the country.
What's the endgame? SDCP's portfolio totals 275 megawatts (MW), with an expansion pipeline expected to reach roughly 737MW by 2033. The company serves financial, technology, and healthcare customers, and is a joint venture between Sabey CorporationDealroom has a profile for this one. Try Dealroom → and National Real Estate AdvisorsDealroom has a profile for this one. Try Dealroom →.
Why now? The investment lands as cloud and AI workloads drive demand for data center capacity. "We remain focused on disciplined growth and delivering the digital infrastructure needed to support the next generation of cloud and AI demand," said Kevin Verdi, executive vice president and chief investment officer at National Real Estate Advisors.
What they're saying: "We are pleased to expand our investment in SDCP and build on our relationship with the Sabey and National teams as we continue to see significant runway for growth," said Jamie Sunday, co-head of real estate secondaries at Ares.
The signal: A second cheque within three months signals investor conviction that data center capacity remains a durable bet. As AI compute strains existing infrastructure, capital is flowing to operators with megawatts and expansion pipelines in hand.
Read more: benzinga.com
Image credit: torkildr
