How is Switch Financing $659m to Expand Data Centre Growth?

Switch, a leading global provider of AI, cloud and enterprise data centres, has raised nearly US$659m through its fourth asset-backed securities (ABS) offering. The deal further strengthens its position as the largest single issuer of data centre ABS since 2024, with a total of US$3.5bn now raised across its platform.

The transaction highlights the company’s growing prominence in sustainable digital infrastructure finance, as all Switch ABS issuances qualify as secured green bonds. The latest proceeds will fund continued data centre development across its five US campuses, supporting hyperscale, AI and enterprise customers.

Funding growth across major AI and cloud campuses

Announced from Las Vegas, the new Class A-2 and Class B Notes achieved strong credit ratings from DBRS Morningstar, ranging from AAA to BBB (low). The scale and success of the deal underscore investor confidence in Switch’s model of combining technological innovation with long-term sustainability.

This ABS issuance also marks Switch’s first transaction since fully retiring US$6.5bn of bank debt in July 2025, clearing the path for new growth-focused investment. The proceeds will go directly toward the expansion of Switch’s exascale campuses in key Tier 1 markets.

Together, these facilities support some of the world’s largest AI, hyperscale and enterprise workloads, forming part of a rapidly growing network of high-efficiency, renewable-powered data centres designed to meet the global rise in compute demand.

Sector milestone for data centre finance

Switch’s enterprise ABS platform now covers ten operational data centres across four major US regions, serving nearly 500 customers. More than 70% of its revenue is generated from investment-grade tenants, contributing to the strong credit quality recognised in the latest transaction.

The company’s introduction of a AAA-rated tranche marks a sector first for non-hyperscale data centre ABS – a milestone that highlights the increasing maturity and institutional appeal of data centre securitisation.

Madonna Park, Chief Financial Officer at Switch, says the offering reflects continued confidence in both the company’s data centre model and its capital markets strategy.

“The success of this transaction and the overall growth of our platform, clearly demonstrate that our formula of leading-edge technology combined with exascale campus deployments in Tier 1 markets continues to resonate with customers and investors alike,” says Madonna.

“As our deep pipeline of fully leased multi-tenant and Hyperscale assets continues to stabilise, we expect to remain an active issuer across the ABS and broader capital markets.”

She adds that Switch’s long-term scale positions it well for continued capital efficiency and growth.

“With roughly US$6bn of stabilised asset financings completed to date, we have the scale and track record to continue to efficiently recycle capital while supporting the largest AI, cloud and enterprise customers, as they grow with Switch,” says Madonna.

Recognition for capital markets leadership

Switch’s ability to raise large-scale green capital while expanding its exascale data centre footprint has attracted widespread industry recognition. The company was recently named “2025 Growth Story of the Year” by TMT Finance and has received further honours from IJ Global, PFIA and Proximo Infrastructure for its capital markets performance.

As demand for AI-ready digital infrastructure accelerates, Switch’s investment strategy reinforces the company’s focus on developing sustainable, high-density data centres across the US. 

Each new phase of growth is underpinned by renewable power sourcing, advanced cooling technologies and modular scalability designed to support next-generation workloads.

Transaction partners

The US$659m transaction was supported by leading global financial institutions and legal advisors. Wells Fargo Securities and RBC Capital Markets served as Co-Structuring Advisors, with Wells Fargo acting as Lead Left Bookrunner. Morgan Stanley, TD Securities and Truist also served as Joint Active Bookrunning Managers.

Switch was advised by Kirkland & Ellis LLP, while Latham & Watkins LLP represented the underwriters.

By combining access to sustainable financing with advanced campus infrastructure, Switch continues to strengthen its position as a key enabler of AI and cloud transformation – driving growth, resilience and innovation in the global data centre ecosystem.