Data center operator Switch plans return to public markets via a $50bn IPO
Investing.com — Switch Inc. has filed confidentially for a U.S. initial public offering that could take place as early as November, Bloomberg reported, citing people familiar with the matter.
The Las Vegas-based data center operator is working with Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley on the potential listing, one of the people said.
Switch could seek a valuation approaching $50 billion, including debt. The company has also been working on a funding round led by venture capital firm Andreessen Horowitz, which was reported in July to be targeting about $2 billion.
Ben Horowitz, co-founder of Andreessen Horowitz, is expected to join Switch’s board in a separate development. The timing, valuation and lineup of banks involved in the offering could still change as preparations continue.
Representatives for Switch, Bank of America, Citigroup, JPMorgan and Morgan Stanley declined to comment. Andreessen Horowitz and Goldman Sachs did not respond to requests for comment.
Switch operates data centers in Nevada, Michigan, Georgia and Texas, according to its website. The company is majority owned by DigitalBridge Group, which led an investor group alongside Australian infrastructure manager IFM Investors in acquiring Switch for $11 billion, including debt, in 2022.
The planned listing comes as data center operators and their suppliers seek to tap investor demand for companies positioned to benefit from rising artificial intelligence infrastructure spending.
Blackstone Digital Infrastructure Trust, a data center acquisition vehicle, raised $2 billion through an IPO in May. Brookfield-backed Csquare Inc. followed with a $1.21 billion offering in July.
Switch’s potential flotation would mark a return to public markets four years after its acquisition. It could also become one of the largest U.S. technology infrastructure listings of the year if the company achieves its reported valuation target.
DigitalBridge agreed last year to be acquired by Japan’s SoftBank Group.
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