Switch taps banks for U.S. IPO that could value data center operator at up to $80 billion

Traders Union
All News
Financial News
Switch prepares $80B IPO

Highlights

Switch tapped Goldman Sachs and JPMorgan Chase as lead underwriters for a U.S. IPO that could value the company up to $80 billion.
Switch held talks with private investors about raising capital at a valuation of at least $40 billion ahead of the IPO.
Surging demand for AI infrastructure and a strong $155.5 billion U.S. IPO market in 2024 underpin interest in Switch, which counts Nvidia and FedEx as customers.

IPO plans and financing preparations

As first reported by Reuters, Switch has selected Goldman Sachs and JPMorgan Chase as lead underwriters for the planned offering, according to two people familiar with the matter. The people say the size, timing and valuation are still under discussion and could change because the talks remain confidential.

Switch has also held discussions with private investors about raising capital at a valuation of at least $40 billion ahead of the IPO, according to a third source. TMT Finance first reported in March on preparations for that potential private round.

Reuters first reported in 2024 that Switch was considering an initial public offering when the discussions were still at an early stage. Las Vegas-based Switch was taken private by DigitalBridge and IFM Investors for $11 billion in 2022, and Australian pension fund Aware Super bought a minority stake from the owners in 2023.

AI infrastructure demand supports market interest

Switch operates large-scale data center campuses that provide the power, cooling and connectivity needed for AI computing, helping cloud providers and enterprises run energy-intensive GPU clusters used to train and deploy artificial intelligence models. Its customers include Nvidia, Dell Technologies and FedEx.

U.S. IPO proceeds have totaled $155.5 billion so far this year, the strongest pace since 2021, according to Dealogic data. The pipeline of large technology and infrastructure listings also includes companies tied to the AI buildout, such as SoftBank-backed SB Energy and Brookfield-backed data center provider Csquare, while AI chipmaker Cerebras Systems surged in its May market debut after raising $5.55 billion in its IPO.

Switch, founded in 2000 by Chief Executive Rob Roy, says its data centers have been powered by renewable energy since 2016. That feature may appeal to technology companies pursuing decarbonization targets as demand for AI computing capacity continues to rise.

Our earlier coverage of the U.S. policy debate over AI data centers highlighted how surging power demand is pushing the issue into the spotlight, with lawmakers questioning how electricity costs and infrastructure needs should be handled. We also noted concerns that data center moratoriums and rising utility bills could collide with America’s push to stay competitive in AI, as officials weigh the trade-offs between investment, inflation pressures, and long-term industrial leadership.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.