Data centre developer Switch is reportedly in advanced discussions to raise billions of dollars, a move that could significantly value the company at a minimum of US$50 billion. The development was initially reported by The Information on Thursday, citing sources with direct knowledge of the ongoing deal. Private equity powerhouses such as Brookfield Asset Management and KKR, alongside other prominent institutional investors, are understood to be involved in the discussions regarding this substantial funding round, which signals strong market confidence in the sector.
Switch is a prominent data centre developer, founded in 2000 by CEO Rob Roy and headquartered in Las Vegas, Nevada. The company provides critical infrastructure and services, enabling businesses to manage and securely store vast amounts of digital data for various industries. This significant fundraising initiative could pave the way for an initial public offering (IPO) for Switch, potentially as early as next year, according to the report. Its established client roster includes major global corporations like Nvidia, FedEx, Tesla, and Logitech, underscoring its market presence.
The anticipated fundraise and potential public listing arrive amidst a notable and sustained uptick in dealmaking activity across the data centre and server industries globally. This surge is largely fuelled by the rapid expansion and increasing demand for infrastructure driven by artificial intelligence technologies. Goldman Sachs and JP Morgan bankers are reportedly collaborating closely with Switch to facilitate the intricate capital raising efforts. However, Switch did not immediately respond to Reuters’ requests for comment outside regular business hours, and Reuters indicated it could not independently verify the report at the time of publication.
