Data center firm Switch eyes up to $80 billion IPO, taps banks for potential $10 billion offering

Data center operator Switch is reportedly preparing for a significant initial public offering (IPO) that could value the company at nearly $80 billion, including debt. The company has engaged investment banks Goldman Sachs and JPMorgan Chase as lead underwriters for the potential offering.

The IPO, which could raise up to $10 billion, is anticipated as early as the fourth quarter. While the specifics of the size, timing, and valuation are still under discussion and subject to change, the move underscores a robust investor appetite for companies poised to benefit from the surging demand for artificial intelligence infrastructure.

Switch operates large-scale data center campuses crucial for supporting AI computing. These facilities provide the necessary power, cooling, and connectivity for cloud providers and enterprises to deploy energy-intensive GPU clusters essential for training and running AI models. Notable customers include technology giants like Nvidia and Dell Technologies, as well as logistics firm FedEx.

This potential IPO would rank among the largest U.S. stock market debuts in recent years, mirroring a broader trend of strong performance in the U.S. IPO market this year. Total IPO proceeds have reached $155.5 billion so far, marking the strongest pace since 2021. The market has seen major technology and AI-related listings, including SpaceX, and anticipation builds for potential debuts from AI research firms Anthropic and OpenAI.

Switch's data centers have been powered by renewable energy since 2016, a feature that may appeal to technology companies focused on decarbonization goals. The company, founded in 2000 by CEO Rob Roy, was taken private in 2022 by DigitalBridge and IFM Investors for $11 billion. Australian pension fund Aware Super acquired a minority stake in 2023.