Vancouver-based QuadReal Property Group is in talks to invest $1 billion in T5 Data Centers, Bloomberg reports.

As negotiations are ongoing, the transaction is not a guaranteed deal. People familiar with the matter have told Bloomberg that the investment will be spent on buying and building new data centers.

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Billion dollar investment

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, Colorado Springs, Chicago and Atlanta, where it is planning another $100m facility. The company also announced that it would be entering the European market with a data center in Cork, Ireland.

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

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