Vancouver-based QuadReal Property Group and US wholesale facility provider T5 Data Centers have joined forces to invest over $2.5 billion in data centers.

The platform will continue to be called T5 Data Centers, and will be used to develop and acquire enterprise and hyperscale data centers.

– T5 Data Centers

Stacks of cash

Last month we wrote that QuadReal are considering investing $1 billion in T5, and it is unclear if this platform is a joint venture between the two companies or a de-facto investment in the company.

We also previously reported that Australian financial services provider Macquarie Group could take a majority stake in T5 data centers, as previous investors Iron Point Partners considered a sale of their shares.

The company’s value is believed to have been set at approximately $800 million in the negotiations

QuadReal is the real estate investment division of British Columbia Investment Management Corp. The real estate arm manages around $20.6bn (C$27.4bn)of the company’s $145.6bn (C$109.3bn).

T5 Data Centers has grown both organically and through acquisitions since it was founded in 2007. Most of T5's data centers are in Tier 1 US markets - including Los Angeles, Dallas, New York, Charlotte and Colorado Springs. The company also announced that it would be entering the European market with a data center in Cork, Ireland.

Jameson Weber, head of special situations for QuadReal said: “This strategic investment puts us in a very unique position to participate in this growing market alongside a trusted company with a proven track record in data center development, construction, and management. T5 Data Centers is the logical partner to help us build a long-term business in tech-related real estate.”