Stream Data Centers is working with Goldman Sachs on a devco capital raise process, said sources familiar with the situation.

Potentially interested parties are beginning to engage with the company and its advisor.

The Dallas, Texas, company could look to raise up to USD 2bn, some of the sources said.

The data center company is an affiliate of Stream Realty Services, a Texas-based real estate investor that focuses on retail, healthcare, industrial and other types of development, according to its website.

Stream launched the business in 1999, acquiring its first assets at that time.

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.

Establishing a devco, or development company, is a situation where a company forms an affiliate that takes on the origination and financing risk for a project or group of projects. After a defined time, the parent company, or holdco, eventually acquires and takes possession of the fully developed assets.

Generally, devco financing is more corporate in nature with flexible terms in what the proceeds can be used for in comparison to nonrecourse project finance – another financing mechanism that data center developers are using more widely, according to industry executives.

Goldman declined to comment while Stream Data Centers and its parent did not respond to requests for comment.