- What QuadReal Property Group is expanding its investment in U.S. data-centre development
- Why The firm is looking to grow its existing partnership with T5 Data Centers
- What next T5 has data-centre sites under construction in Atlanta, Charlotte and Chicago
QuadReal Property Group is doubling down on a joint venture to build data centres in the lucrative U.S. market.
The Vancouver-based real estate arm of British Columbia Investment Management will inject more capital into an existing partnership with U.S. data-centre operator T5 Data Centers with the aim of growing its investment to US$8bn (C$11.4bn) in value. The funds will be used to build new facilities in the U.S. market.
The agreement builds on QuadReal’s initial $2.5bn investment in Atlanta-based T5, announced in 2019.
Through the expanded partnership, QuadReal plans to add five gigawatts of power to T5’s existing capacity, enough to attract large “hyperscalers,” such as Microsoft or Oracle, which require enormous amounts of power for AI development. The expanded capacity also will address the increasing demand for cloud data storage.
“What we’re really focused on is making sure that our campus strategy – and, really, everything that we’re doing – can both serve the cloud demand as well as AI and large enterprise,” Jamie Weber, QuadReal’s managing director and head of Americas, told Green Street News.
T5 has campuses in the biggest U.S. data-centre markets, including Silicon Valley, Los Angeles and Dallas. The company has a data centre under development in Charlotte, and is completing work on a 1m sq ft facility outside of Atlanta and a 250,000 sq ft site outside of Chicago.
The investment acknowledges a shift in data-centre development, which has evolved with the demand for AI from smaller turnkey facilities to massive build-to-suit sites customized to the needs of a hyperscale end user, Weber said.
QuadReal’s recent investment will be limited to the U.S. data-centre market, which is projected to grow to over $150bn in value by 2026, according to Precedence Research. However, Weber said he is encouraged by recent moves in Canada, including the federal government’s pledge to contribute C$2bn to domestic data-centre development.
“There will, I’m sure, be opportunistic situations that could bring the T5 platform to Canada, but that’s not where we’re focused, and we think focus is extraordinarily important in this space,” he said.
QuadReal is an investor in Cologix, which has built over 20 interconnected data centres in Canada.
Article updated at 11:25 a.m. ET on Feb. 24, 2025, to reflect that QuadReal and T5 Data Centers are looking to grow their U.S. data centre joint venture to US$8bn (C$11.4bn) in value.
