Switch Data Center Seeks Billions at $50B-Plus Valuation
Las Vegas-based data center operator Switch is in advanced talks to raise billions of dollars in a new funding round that could value the company at more than $50 billion a figure that would make it one of the most valuable privately held data center operators in the world. Brookfield Asset Management, KKR, and other private equity and institutional investors have been in discussions to invest in the round, with Goldman Sachs and JP Morgan bankers working alongside Switch to manage the fundraise.ÂÂ
The Switch data center $50 billion funding round was first reported by The Information late Thursday, and comes at a moment when AI-driven demand for compute infrastructure is pushing data center valuations to historic highs. Dealmaking in the data center and server industry has witnessed a sharp uptick with the rapid growth of artificial intelligence.
An IPO Could Follow as Early as Next Year
The potential investment highlights the growing demand for data center infrastructure as AI continues to drive unprecedented growth in computing and cloud services. The fundraising round could possibly set up Switch for an initial public offering, which could come as early as next year. Switch’s backers have also considered a valuation of around $60 billion including debt via a stock-market listing.
Switch was founded in 2000 by CEO Rob Roy and headquartered in Las Vegas, Nevada. The company counts Nvidia, FedEx, Tesla, and Logitech among its clients. The firm specializes in designing and operating energy-efficient, high-density data centers an increasingly strategic asset class as hyperscalers race to secure reliable compute capacity for AI workloads.
The timing of the Switch data center $50 billion funding talks is notable. The company was taken private by DigitalBridge and IFM Investors in 2022 for around $11 billion meaning the current target valuation would represent a more than four-fold increase in just four years, a testament to how dramatically AI has repriced infrastructure assets across the board.
