Switch is engaged in discussions to secure billions of dollars in new capital at a valuation of no less than $50 billion, according to people familiar with the matter. The fundraising talks include interest from large private equity and institutional investors and are being structured with the help of major investment banks.
Key elements of the reported financing effort include the following:
- Brookfield Asset Management, KKR and other private equity and institutional investors have been in talks to participate in the round.
- The capital raise could lay groundwork for an initial public offering, with a potential timing as soon as next year.
- Goldman Sachs and JPMorgan bankers are reported to be advising Switch on the fundraise.
Company representatives did not immediately respond to requests for comment outside regular business hours. The report relating to these discussions could not be immediately independently verified.
Industry observers note an increase in dealmaking across the data center and server industries, an uptick attributed in the report to the rapid expansion of artificial intelligence workloads and related infrastructure demand.
Switch was founded in 2000 by CEO Rob Roy and is headquartered in Las Vegas, Nevada. According to information on the company website, its customer roster includes Nvidia, Fedex, Tesla and Logitech.
The combination of large strategic investors and marquee advisory banks suggests an effort to assemble a sizeable private round that would both fund expansion and potentially set a public-market timeline. Details including the final amount sought, exact investor commitments and timing remain subject to confirmation.
Summary of factual points presented in this report:
- Negotiations underway for a multi-billion dollar fundraising at a valuation of at least $50 billion.
- Brookfield, KKR and other private equity/institutional investors are reported participants in talks.
- Goldman Sachs and JPMorgan are working with Switch on the fundraise.
- Fundraising could enable an IPO, possibly as early as next year.
- Switch was founded in 2000 by Rob Roy, is based in Las Vegas, and lists Nvidia, Fedex, Tesla and Logitech among its clients per its website.