Ares Expands Sabey Data Center Properties Investment to More Than $500 Million

Ares Secondaries funds have expanded their investment in Sabey Data Center Properties, LLC (SDCP), bringing the total commitment from Ares Management to more than $500 million, Sabey Corporation and National Real Estate Advisors, LLC announced Oct. 5. The follow-on investment builds on the minority equity investment Ares announced in July 2026.

SDCP, an owner, developer and operator of data centers across the United States, is a joint venture between Sabey Corporation and National Real Estate Advisors, which acts as investment manager on behalf of its institutional clients. The companies said the platform owns and operates hyperscale and enterprise data center campuses in top-tier U.S. markets totaling 275 megawatts (MW), with an expansion pipeline expected to reach approximately 737 MW by 2033.

Ares Management Deepens Stake in Sabey Data Center Properties

The transaction is a follow-on minority equity investment by Ares Secondaries funds rather than a sale of an individual property. The release characterizes the arrangement as aligning three long-term partners committed to supporting SDCP's continued growth and expanding the platform's ability to serve customers across an increasingly data-driven economy.

Kevin Verdi, Executive Vice President & Chief Investment Officer at National Real Estate Advisors, said in the announcement: "This follow-on investment reflects continued conviction in SDCP's long-term value proposition and growth trajectory. We remain focused on disciplined growth and delivering the digital infrastructure needed to support the next generation of cloud and AI demand."

Tim Mirick, President of Sabey Data Center Properties, said: "We are pleased to deepen our relationship with Ares as we continue executing on our long-term growth strategy. This additional commitment reflects confidence in the strength of our platform and our ability to develop and operate the mission-critical infrastructure our customers rely on."

Jamie Sunday, Co-Head of Real Estate Secondaries at Ares, said: "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."

Platform Capacity and Expansion Pipeline

SDCP's reported 275 MW compares with the roughly 251 MW of operating capacity described in the July announcement of Ares' initial investment, which cited six energized campuses. The July figure included 76 MW of built powered-shell capacity as of March 31, 2026. Powered-shell capacity refers to constructed electrical and physical infrastructure that may not yet be fully fitted out or occupied by customers.

The pipeline target of approximately 737 MW by 2033 implies roughly 462 MW of incremental capacity beyond the currently reported 275 MW, or about 168% growth. Sabey Data Centers describes a portfolio of more than four million square feet of mission-critical space and is among the largest privately owned multi-tenant data center owners, developers and operators in the United States, according to the company's own description.

Sabey's public operating information identifies the following principal locations:

• SDC Seattle (Intergate.East): 3355 35th Ave. S., Tukwila, Wash.; more than 1 million square feet and 54 MW, suited to colocation and powered-shell deployments.
• SDC Quincy: 2200 M St. NE, Quincy, Wash.; 530,000 square feet across five purpose-built buildings and approximately 50 to 60 MW. It is Sabey's largest campus and operates as a multi-tenant facility.
• SDC Austin: 1300 Louis Henna Blvd., Round Rock, Texas; 603,300 square feet across two purpose-built data centers and up to 84 MW.
• SDC Ashburn: a 38-acre campus in Ashburn, Va., with planned capacity of roughly 85 MW.
• SDC Columbia: a campus in Columbia, Wash., with access to low-cost hydroelectric power.
• SDC East Wenatchee: a campus in East Wenatchee, Wash.

Sabey also lists a New York City facility, Intergate Manhattan at 375 Pearl Street, in public company descriptions. Public information is not sufficient to confirm that all of these facilities make up the full SDCP investment perimeter.

Market Context: Record-Low Vacancy and Rising Rents

The investment comes as North American data center supply remains tight. CBRE reported that primary-market supply reached a record 10,903 MW in the first half of 2026, up 33.7% year over year. Vacancy nonetheless fell to a record-low 1.4%, from 1.6% a year earlier, as new capacity was absorbed.

Average rents rose 8.3% for deployments of 3 to 10 MW, 7.9% for deployments of 500 kW to 3 MW and 6.7% for deployments above 10 MW during the first half of 2026. Data center investment sales totaled $1.7 billion in the first half, with investors increasingly focused on construction financing and development equity.

Ares' July announcement characterized SDCP as having six energized campuses with predominantly investment-grade enterprise and hyperscale tenants, along with additional land for expansion.

About the Companies

Sabey Corporation is a privately held commercial real estate development and investment company established in 1971, specializing in data center, medical and life sciences, education, government and military properties. It is headquartered in Tukwila, Wash., and employs more than 270 people.

National Real Estate Advisors, LLC is an investment manager that develops, operates and manages commercial real estate and infrastructure projects across the United States. Since 2000, it has built portfolios concentrated primarily in multifamily, data centers, healthcare-related and mixed-use facilities. National is an independently operated subsidiary of the National Electrical Benefit Fund, a pension trust whose assets National manages on a discretionary basis.

Ares Management Corporation (NYSE: ARES) is a global alternative investment manager with operations across credit, real estate, private equity and infrastructure. As of June 30, 2026, its global platform had more than $671 billion of assets under management.

Outlook

With Ares' cumulative commitment now above $500 million, SDCP has additional equity behind a development pipeline that would take the platform from 275 MW to approximately 737 MW by 2033.

Sources

• GlobeNewswire: Sabey Data Center Properties Secures Additional Investment from Ares to Support Continued Growth (Oct. 5, 2026)