Data Center Operator Switch Plans IPO with Up to $80 Billion Valuation

Data center operator Switch has confidentially filed for an initial public offering (IPO), aiming to return to public markets after being taken private in 2022. The move seeks to capitalize on the soaring global demand for artificial intelligence (AI) infrastructure, reflecting a broader trend in the technology and digital infrastructure sector. According to Bloomberg reports, a Switch listing could occur as early as November.

The Las Vegas-based company plans to raise up to $10 billion through the IPO, with its total valuation, including debt, expected to approach $80 billion. Reuters previously reported that Goldman Sachs (GS) and JPMorgan Chase (JPM) have been tapped as lead underwriters for the offering. Other major banks, including Bank of America (BAC), Citigroup (C), and Morgan Stanley (MS), are also reportedly involved in the IPO process. Separately, Switch has been working on a funding round led by venture capital firm Andreessen Horowitz, whose co-founder, Ben Horowitz, is expected to join Switch's board.

Switch first went public on the New York Stock Exchange in 2017 but was taken private in 2022 in an $11 billion deal by a consortium led by DigitalBridge Group (DBRG) and IFM Investors. Under the leadership of CEO Rob Roy, Switch operates large-scale data center campuses powered by renewable energy since 2016, providing the high power, cooling, and connectivity necessary for demanding AI workloads. Its clientele includes major technology firms and enterprises such as Nvidia, Dell Technologies, and FedEx.

This development underscores how the AI boom is reshaping financial markets, with data centers becoming critical infrastructure for training and running AI models. The U.S. IPO market has seen a strong rebound this year, marking its strongest pace since 2021, fueled by a pipeline of large technology and AI-related listings, including SpaceX, Anthropic, and OpenAI.

Market analysts suggest that Switch's IPO could set a benchmark for other players in the data center sector. With investor appetite for AI-focused infrastructure companies running high, Switch's valuation and IPO performance could significantly influence future financing models in the industry. The trend of digital infrastructure firms returning to public markets via IPOs is expected to continue in the coming period.