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Switch Raises $768 Million in Latest Data Center ABS Issuance

Switch, a leading provider in AI, cloud, and enterprise data centers, has announced a significant milestone by closing an asset-backed securities (ABS) offering that secured approximately $768 million in funds. This latest issuance, designated as Series 2026-1, marks the expansion of Switch's diversified master trust into a fifth geographic market and adds a considerable asset base to its portfolio.

The Class A-2 Notes from this offering have received stellar ratings of AAA (sf), AA (low), and A (low) from DBRS Morningstar, indicating a robust credit quality. The expected repayment date for these notes is set for March 2031. Following the transaction, the proceeds will be strategically utilized for the repayment of existing debts and broader corporate purposes, which underlines Switch's prudent financial management.

With this issuance, the data center based in Reno, Nevada, which boasts a vast 1.4 million square feet of space, has been incorporated into the securitized portfolio. This facility adds a powerful 52 megawatts of capacity and significantly extends the company’s reach in the competitive data center market.

Currently, Switch’s securitized pool comprises 11 data centers across five U.S. markets, catering to over 550 customers, with an impressive 84% of revenue generated from clients with investment-grade credit profiles. This statistic reflects the platform's inherent stability and credit strength, reinforcing the company's operational reliability in a fluctuating market. Since 2024, Switch has successfully completed five ABS issuances, cumulatively raising around $4.2 billion, a testament to its favorable positioning and consistent performance in the capital markets.

Madonna Park, Chief Financial Officer of Switch, expressed optimism about the ABS program’s success: "The continued execution of our ABS program reflects the strength of our business and the consistency of our approach in the capital markets." She highlighted that the company benefits from a strong visibility of long-term contracted demand generated by a high-quality customer base. This focus on securitization not only forms a core funding strategy but also aligns with their disciplined approach towards capital formation.

Additionally, Jon Edwards, EVP and Head of Capital Markets at Switch, recognized the importance of investor relationships in facilitating such transactions. "This transaction underscores our consistent access to the ABS market across macro environments and is a testament to the quality of the Switch platform and the depth of our investor relationships," he noted, emphasizing the trust investors have in their operational model.

In a separate highlight, Switch recently garnered an award for the North America MBS Issue of the Year at the 2026 IFR Awards, thanks to its previous $2.4 billion data center CMBS financing completed in 2025. This award reaffirms Switch's leadership status in the intricate landscape of data center infrastructure capital markets.

The recent transaction involved several prominent financial entities. Barclays and Citigroup acted as co-structuring advisors and joint active bookrunning managers, while BMO Capital Markets and Truist participated as joint active bookrunning managers alongside legal counsel from Kirkland & Ellis LLP and Latham & Watkins LLP.

About Switch

Founded in 2000 by CEO Rob Roy, Switch is at the leading edge of data center campus design, construction, and operation. The company offers cutting-edge, highly scalable, and sustainable data centers optimized for AI, cloud, and enterprise usage. With a comprehensive portfolio that includes liquid-cooled AI and hyperscale cloud facilities, Switch caters to a diverse range of demanding clients while maintaining the highest security standards. For more information, visit Switch’s official website and follow them on LinkedIn, Facebook, and X.