Switch's Capital Expansion: $20 Billion Raised for Sustainable Growth and Innovation

Switch Secures $20 Billion to Advance AI Infrastructure

In a strategic move, Switch, a leading provider of AI, cloud, and enterprise data centers, has announced an expansion of its Borrowing Base and Revolving Credit Facilities to a total of $10 billion. This significant financial step has enabled the company to raise $20 billion since 2024 through sustainable financing strategies, which include sustainability-linked loans, green loans, and green bonds.

The total capital raised incorporates $5.2 billion from earlier announced CMBS and ABS issuances—the largest in the sector—along with $4.5 billion in project-level infrastructure financings. The fresh capital will be directed toward the growth of Switch’s contracted campus developments across the nation, aid in lowering its borrowing costs, and enable the complete retirement of bank debts incurred during its 2022 take-private transaction.

Driving Forces Behind the Expansion

This robust funding foundation also supports the expansion of Switch's innovative product range, particularly its latest development, Rob Roy's EVO AI Factories. Designed specifically for next-generation AI and hyperscale cloud workloads, these AI factories feature a unique hybrid air and liquid cooling system to support extreme power densities, capable of handling up to 2 MW per rack. This aligns with NVIDIA's DGX™ and MGX roadmaps, and preparations for the latest systems are already underway.

Construction is progressing across all five of Switch’s campuses, including critical sites in Tahoe Reno and Atlanta—two of the fastest-growing markets for AI infrastructure in the U.S. Phased capacity deliveries are secured by long-term customer contracts, ensuring a steady demand for Switch's services.

Quotes from Leadership

Thomas Morton, President of Switch, emphasized the importance of digital infrastructure to current and future AI technologies: "As digital infrastructure becomes increasingly essential for enabling AI and next-gen technologies, our commitment remains focused on delivering performance and reliability at scale. With a solid view of contracted demand, our access to capital equips us to execute efficiently while ensuring our infrastructure can meet future demands."

Madonna Park, Chief Financial Officer of Switch, highlighted the alignment of their capital strategy with long-term customer commitments: "This expanded access to capital allows us to execute on our secured developments and provides the flexibility and liquidity needed for sustained growth."

Confidence from Partners

Jesse Burros, Chief Investment Officer of Switch, expressed appreciation for the continued support from both new and established capital partners: "The oversubscription of our latest financing is a testament to institutional confidence in our platform, backed by a robust contracted pipeline and disciplined execution."

The recent expansion of the Corporate Revolving Credit Facility saw backing from a collaborative syndicate of leading financial institutions, with TD Securities and J.P. Morgan playing significant roles in the financing process. This expansion meets growing demand and aligns with a commitment to sustainable infrastructure development.

Switch's legal counsel for the recent financing includes prominent firms for various transactions, ensuring compliance, and strategy alignment throughout the process.

About Switch

Founded in 2000 by CEO Rob Roy, Switch stands as a pioneer in designing, constructing, and operating data center campuses. Specializing in AI, cloud, and enterprise data centers, Switch provides highly modular and sustainable solutions tailored for discerning clients. For more information, please visit www.switch.com and follow them on LinkedIn, Facebook, and other platforms.