Switch, the data-center operator known for its massive Nevada facilities, is in discussions to raise fresh capital at a valuation that could top $50 billion, according to people familiar with the matter. The talks come as demand for cloud and AI infrastructure continues to drive investor appetite for the sector.
A lofty valuation target
The company's existing backers and potential new investors are weighing terms for a fundraising round that would value Switch well above its last known private valuation. Though no deal is finalized, sources say the $50 billion figure is the working target.
Switch has long been a major player in the data-center world, building sprawling campuses that host computing for some of the biggest tech companies. A valuation at that level would put it in the same league as the largest publicly traded data-center REITs.
Why the company is going back to the market
Data-center operators are racing to expand capacity as artificial-intelligence workloads and cloud migrations chew up more power and space. Switch has been adding new facilities in states such as Texas and Michigan, and the fresh funds would likely finance more construction.
The company declined to comment on the fundraising discussions. The talks are private and could still fall apart or shift in size and terms, one person cautioned.
What this means for the data-center landscape
A $50 billion valuation would signal that investors continue to see data centers as one of the best bets in tech infrastructure. Rivals like Equinix and Digital Realty trade at market caps in the tens of billions, and Switch's valuation would put it in their ballpark.
But the number also reflects the sheer scale of Switch's land bank and power capacity. The company owns some of the largest data-center campuses in the world, including its flagship SuperNAP in Las Vegas.
Other data-center operators have also been raising money at high multiples, but Switch's brand and history of serving hyperscale clients give it a premium.
The next step for the company will be closing the round, or potentially pursuing an initial public offering if the private market doesn't deliver the valuation it wants. No timeline for a decision has been announced.
