Founded in 2002, Trace3 has built a national presence serving Fortune 500 and commercial clients with expertise spanning AI, cloud, data analytics, cybersecurity, managed services, and data center infrastructure. Its recent acquisitions of Seattle-based IVOXY Consulting (2025) and Denver’s Zivaro (2024) underscore a strategy of targeted market and vertical expansion.
But the AI and digital infrastructure boom also carries an environmental cost. The International Energy Agency projects that global data center electricity consumption could more than double by 2030, reaching roughly 945 TWh — about the same as Japan’s current annual use. This surge is being fueled in part by the rapid adoption of AI workloads, which require far more processing power than conventional cloud services.
In the U.S., the demand spike is prompting regulatory responses. Ohio recently introduced rules requiring new data centers to pay for at least 85% of their contracted power use over 12 years to protect residential customers from rate hikes. Utilities such as Vistra Corp. compare the current load growth to the 1990s tech boom, driven by AI, crypto mining, and manufacturing.
Alongside electricity, water usage is emerging as a critical sustainability challenge. Large data centers can consume up to 2 million liters per day for cooling, according to the International Energy Agency (IEA) consolidated by industry researchers, straining resources in drought-prone regions like Arizona and Texas.
From an emissions perspective, U.S. data centers account for more than 105 million tons of CO₂ annually, according to a 2024 study on AI and cloud environmental impacts. Researchers warn that the rapid scale-up of AI could result in public health–related environmental costs exceeding $20 billion per year by 2030, disproportionately affecting low-income communities.
Apollo’s investment could give Trace3 a competitive edge in addressing these sustainability concerns. Industry leaders such as Google are already collaborating with utilities on “demand response” programs to align data center operations with periods of higher renewable energy availability. In Europe, developers are repurposing retired coal and gas plants into data centers, leveraging existing infrastructure to reduce grid and water stress.
Integrating such strategies could allow Trace3 to meet AI-driven growth goals while improving environmental performance — a key differentiator in a market where ESG considerations increasingly influence enterprise purchasing decisions.
“The partnership with Apollo is a powerful testament to the quality of our brand, our people and our consistent track record of growth,” said Rich Fennessy, Chief Executive Officer of Trace3. “They embrace our unwavering commitment to innovation, technical excellence and deep client relationships. Together, we’re poised to accelerate the Company’s trajectory while preserving the special culture that continues to attract the best talent in technology.”
Robert Kalsow-Ramos, Partner at Apollo, said the firm sees “a meaningful opportunity to support Trace3’s efforts to meet AI-related demand… expand high-value service offerings while pursuing strategic M&A to help accelerate the company’s growth trajectory.”
Kevin Penn, Managing Director at American Securities, credited management for “scaling the business, expanding its capabilities and establishing the company as a trusted partner in delivering cutting-edge technology solutions.”
If approved, the deal would position Trace3 to scale rapidly in AI and digital infrastructure — but success will also depend on navigating the growing environmental, regulatory, and community pressures surrounding large-scale computing. For Apollo, integrating sustainability into this expansion could enhance both operational resilience and long-term value.
