Ares Has Increased Investment in Sabey Data Centers

The expanded equity commitment signals growth for a pipeline expected to reach 737 megawatts by 2033.

Updated on Oct. 5, 2026 in Data Centers

Isometric editorial illustration featuring stacked rectilinear data center cooling vents and power conduits in muted slate and teal tones. — Ares Management has increased its minority equity investment in Sabey Data Center Properties to over $500 million, accelerating nationwide digital infrastructure expansion. AI Illustration. Upload story photo >

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Ares Secondaries funds have expanded their minority equity investment in Sabey Data Center Properties. The commitment brings total funding from Ares to more than $500 million, supporting the firm's ongoing infrastructure development.

Why it matters

This capital injection accelerates the expansion of digital infrastructure necessary to support hyperscale and enterprise demand. The investment provides Sabey the financial backing required to scale its current operations toward its long-term capacity targets.

Sabey Data Center Properties currently operates 275 megawatts of capacity across four million square feet. The firm maintains an aggressive expansion pipeline, projecting total capacity to reach 737 megawatts by 2033.

The players

Ares Secondaries

An investment arm of Ares Management that focuses on complex equity and debt transactions in the global alternative assets market.

Sabey Data Center Properties

A joint venture between Sabey Corporation and National Real Estate Advisors that develops and manages data center campuses.

The details

Sabey Data Center Properties is a joint venture between Sabey Corporation and National Real Estate Advisors that develops and operates large-scale server facilities. These campuses provide the power, cooling, and security infrastructure required for hyperscale—large-scale cloud computing environments—and enterprise operations. By expanding its equity stake, Ares supports the continued construction and management of these high-density digital environments across the United States.

July 2026: Ares announced its initial minority investment in the firm.
October 5, 2026: Ares and Sabey announced the expanded investment.
2033: Sabey projects its expansion pipeline will reach 737 megawatts of capacity.

The Tech Race

This investment follows a broader trend where private equity firms are increasingly locking in long-term capital positions to capture the rising demand for high-density server space. The deal places Sabey in direct competition with other hyperscale developers racing to meet the infrastructure requirements of modern cloud providers.

This deal secures the long-term funding necessary for building the physical footprint that hosts cloud-based applications and enterprise services. While the investment does not change consumer access today, it determines the availability and scale of the data infrastructure that supports the services users rely on daily.

The takeaway

Large-scale infrastructure development requires multi-billion dollar capital commitments to bridge the gap between current demand and future capacity needs. Track future facility openings and capacity announcements from the joint venture as indicators of market growth.