Switch Seeks $2 Billion Funding at Nearly $50 Billion Valuation Ahead of Potential IPO

Data center operator Switch has reportedly launched a private funding round led by venture capital giant Andreessen Horowitz, aiming to raise approximately $2 billion in fresh capital at a valuation approaching $50 billion, including debt. The fundraising underscores growing investor confidence in AI-driven infrastructure as demand for high-performance data centers continues to accelerate.

According to a Bloomberg News report citing people familiar with the matter, the financing values Switch's equity at roughly $19 billion before the new investment. Andreessen Horowitz is expected to contribute around $400 million, while Goldman Sachs and JPMorgan Chase are helping arrange the financing.

The capital raise comes at a time when artificial intelligence is fueling unprecedented demand for computing capacity, cloud services, and advanced digital infrastructure. As AI adoption expands across industries, investors have increasingly targeted data center operators that provide the critical facilities needed to support AI workloads and large-scale cloud computing.

Bloomberg reported that the funding round is expected to pave the way for a potential initial public offering (IPO) as early as next year. However, the discussions remain ongoing, and the size, valuation, and timing of both the financing and any public listing could still change.

Headquartered in Las Vegas, Switch has established itself as a major provider of highly secure and energy-efficient data center campuses serving enterprise customers, cloud providers, and technology companies. Its facilities have become increasingly valuable as organizations invest heavily in AI infrastructure and digital transformation initiatives.

Switch is majority-owned by DigitalBridge Group (NYSE: DBRG) following its acquisition of the company alongside IFM Investors in a 2022 transaction valued at approximately $11 billion, including debt. Since then, the rapid expansion of artificial intelligence and cloud computing has significantly boosted the value of premium data center assets.

If completed, the latest funding round would rank among the largest private investments in the data center industry, highlighting the strong appetite for AI infrastructure and positioning Switch for future growth as global demand for computing power continues to climb.