Hyperscale and enterprise data center developer Stream Data Centers has pivoted to seeking an equity partner through its opco entity after initially engaging in a devco capital raise process, a source familiar with the situation said.

Started in 1999, Dallas-based Stream Data Centers is the technical real estate affiliate of Stream Realty Partners. In November, Infralogic reported that Stream Data Centers was working with Goldman Sachs on a devco capital raise of about USD 2bn.

The equity raise through the opco, Stream Data Centers LP, is now executives’ priority, but the process could potentially pivot back to include a devco raise depending on how the equity process concludes, the source said.

Goldman continues to advise company executives, who are currently reviewing offers from interested parties, including infrastructure funds. Akin Gump is acting as legal advisor.

After the opco process, the firm also may seek real estate financing, most likely in the second half of the year.

Stream Data Centers has a longtime joint-venture relationship with Principal Asset Management. Last month the investor announced it raised a USD 3.64bn fund dedicated to data center development initiatives exclusively with Stream.

Many data center firms are getting advice from banks and investors to broaden their capital sources, so executives have multiple levers to pull to fund their businesses, from ABS deals, to yieldco’s, opco, or devco arrangements, JVs, CMBS, project finance and even privately placed bonds.

Moelis has acted as the firm’s debt advisor on other transactions, including financing of debt capital to complete hyperscale data center builds in Phoenix and Chicago.

Over time, Stream Data Centers has developed wholesale and built-to-suit projects for hyperscale and enterprise customers. It has now delivered on 26 data center campuses across the US, according to its website.

Stream Data Centers declined to comment. Stream Realty, Goldman and Akin Gump did not respond to requests for comment.