Telefonica is reportedly mulling the sale of its data centres, a move which could fetch up to $1 billion, as it considers options to reduce debt.

Bloomberg reported the Spain-based telecoms group is working with financial advisers to identify potential buyers, which includes private equity funds and infrastructure giants that currently run data centres.

Sources told the news website a sale of Telefonica’s data centres, which are located in Spain, the US and Latin America, could fetch between $500 million to $1 billion, depending on which assets are sold.

Bloomberg added a potential sale was in an early review phase and it could still be abandoned.

In the company’s most recent earnings report, Telefonica said debt fell for a sixth consecutive quarter, but still stood at €42.6 billion.

Telefonica has also been linked to other asset sales, particularly in Latin America, but has put off long-running plans to float its UK O2 unit.

A sale of Telefonica’s data centres would follow something of an industry trend after US operators AT&T and Verizon both sold off some similar assets in recent years.