Key facts
- Data center operator Switch is preparing for an initial public offering.
- The IPO could raise up to $10 billion and value the company at nearly $80 billion.
- Goldman Sachs and JPMorgan Chase are leading the underwriting.
- The offering is anticipated in the fourth quarter.
- Switch's data centers support AI computing infrastructure.
Data center operator Switch has hired investment banks, including Goldman Sachs and JPMorgan Chase, to prepare for an initial public offering that could raise up to $10 billion and value the company at nearly $80 billion, including debt. The offering is anticipated as soon as the fourth quarter, according to sources familiar with the matter.
This potential IPO would be one of the largest U.S. stock market debuts in recent years, reflecting strong investor interest in companies that benefit from the surging demand for artificial intelligence infrastructure. The U.S. IPO market has seen a significant rebound this year, with total proceeds reaching $155.5 billion, the strongest pace since 2021.
Switch operates large-scale data center campuses that provide essential power, cooling, and connectivity for AI computing. Its facilities support cloud providers and enterprises in deploying energy-intensive GPU clusters required for training and running AI models. Key customers include Nvidia, Dell Technologies, and FedEx.
Prior to the IPO preparations, Switch had discussed raising capital from private investors at a valuation of at least $40 billion. The company was taken private in 2022 by DigitalBridge and IFM Investors for $11 billion, with Australian pension fund Aware Super acquiring a minority stake in 2023. Switch was founded in 2000 by CEO Rob Roy and has been powered by renewable energy since 2016.
The growing pipeline of technology and infrastructure listings includes other data center providers like Brookfield-backed Csquare, which is targeting a $4.18 billion valuation, and AI chipmaker Cerebras Systems, which recently raised $5.55 billion in its market debut.