Private capital interest in data center operators is accelerating as artificial intelligence demand lifts the need for server capacity and digital infrastructure. Switch is in talks to raise billions of dollars at a valuation of at least $50 billion, a move that could position the Las Vegas-based company for a potential initial public offering as early as next year.
Highlights
- Switch is in discussions to raise billions of dollars at a valuation of at least $50 billion, according to The Information.
- Brookfield Asset Management, KKR, and other institutional investors are considering participating, with Goldman Sachs and JP Morgan advising on the fundraising.
- The fundraising aims to position Switch for an IPO that could take place as early as next year amid surging AI-driven data center demand.
Fundraising talks and potential IPO path
The Information reported that Switch is in talks to raise billions of dollars at a valuation of at least $50 billion, citing people with knowledge of the deal.Brookfield Asset Management, KKR and other private equity and institutional investors have been discussing participation in the round, while Goldman Sachs and JP Morgan bankers are working with Switch on the fundraising effort. The report said the capital raise could help set up the company for an initial public offering that may come as early as next year.
Switch did not immediately respond to Reuters' request for comment outside regular business hours, and Reuters said it could not immediately verify the report.
AI-driven demand supports sector momentum
Dealmaking in the data center and server industry is picking up as the rapid growth of artificial intelligence increases demand for computing capacity and related infrastructure.Founded in 2000 by Chief Executive Rob Roy, Switch is headquartered in Las Vegas, Nevada. The company lists Nvidia, FedEx, Tesla and Logitech among its clients, according to its website.
Our earlier report on the House Energy and Commerce Committee’s request for an FBI and White House-adviser review looked at claims that foreign influence campaigns are trying to slow U.S. data center construction critical to AI capacity. We noted that lawmakers linked the issue to economic and national-security competitiveness and warned that state-level pauses or proposed moratoriums on new facilities could weaken America’s ability to scale computing infrastructure.
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