Data Center Operator Switch Taps Banks for IPO at Potential $80 Billion Valuation, Sources Say

Data center operator Switch has hired investment banks for a potential initial public offering that could value the company at close to $80 billion, including debt, according to people familiar with the matter. The move signals significant investor appetite for companies powering the artificial intelligence boom.

The Potential Offering

Sources, who requested anonymity as the discussions are private, indicated that Switch is preparing for an IPO that could raise as much as $10 billion. The offering could take place as soon as the fourth quarter of this year.

• Lead Underwriters: Goldman Sachs and JPMorgan Chase have reportedly been selected to lead the offering.
• Pre-IPO Funding: Switch has also held discussions with private investors for a capital raise at a valuation of at least $40 billion ahead of a public listing, according to a separate source.

The size, timing, and valuation of the IPO are still under discussion and remain subject to change.

Market Context and AI Demand

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The potential listing would be one of the largest U.S. stock market debuts in recent years, capitalizing on intense demand for the infrastructure needed to support AI computing. Data centers provide the critical power, cooling, and connectivity for energy-intensive GPU clusters used to train and run advanced AI models.

This move comes amid a rebound in the U.S. IPO market, which has seen proceeds total $155.5 billion so far this year, the strongest pace since 2021, according to data from Dealogic. The market has been buoyed by other technology and AI-related listings, including the recent successful debut of AI chipmaker Cerebras Systems.

Company Background

Switch was taken private in 2022 by DigitalBridge and IFM Investors in a deal valued at $11 billion. Founded in 2000, the Las Vegas-based company operates large-scale data center campuses with customers that include Nvidia, Dell Technologies, and FedEx.

Notably, Switch has powered its data centers with renewable energy since 2016, a key feature that may appeal to technology clients with corporate decarbonization goals. Both Switch and the banks declined to comment on the matter.