Switch, the Las Vegas-headquartered operator of data center facilities, has launched a privately arranged funding effort that market participants say could raise approximately $2 billion and imply an enterprise valuation approaching $50 billion when debt is included.
People familiar with the matter say the equity component of Switch is being valued at roughly $19 billion on a pre-money basis ahead of the planned infusion. Venture capital firm Andreessen Horowitz is expected to be the lead investor in the round, committing about $400 million, while Goldman Sachs and JPMorgan Chase are reported to be working on the financing.
The fundraising effort is occurring against a backdrop of heightened investor appetite for data center assets, driven by growing demand for computing capacity and cloud infrastructure to support artificial intelligence applications. Those trends are cited by participants as factors underpinning the current financing environment for companies in this sector.
According to people involved in the discussions, the private placement would come before a potential initial public offering that could occur as soon as next year. However, those same sources emphasize that talks remain ongoing and that the terms of the transaction are not final and could change.
Switch is majority-owned by Digitalbridge Group, which, together with IFM Investors, bought the company in 2022 in a deal valued at $11 billion including debt. That ownership structure remains in place as the company pursues the new capital round.
Context and immediate implications
The proposed financing would inject substantial private capital into Switch and sets a high enterprise valuation that reflects investor interest in infrastructure tied to AI-driven compute demand. The involvement of a prominent venture firm and major banks underscores the size and profile of the transaction, even as its final structure remains subject to change.