Data center developer Switch negotiating raise at 50 billion dollar plus valuation
Data center developer Switch is in talks to raise billions at a valuation above $50 billion, The Information reports. Brookfield $BAM and KKR $KKR are among investors in early talks. Switch went private in 2022 at about $11 billion. An IPO could follow next year, per the report.
Data center developer Switch is in talks to raise billions of dollars at a valuation of more than $50 billion, The Information reported Thursday, in a story picked up by Reuters. Brookfield Asset Management $BAM, KKR $KKR and other private equity and institutional investors have been in early talks to participate in the round. The fundraising could position the Las Vegas-based company for an initial public offering as early as next year, per the report. Switch was taken private by DigitalBridge and IFM Investors in 2022 in a deal valued around $11 billion, so the valuation now under discussion would represent more than a fourfold increase in four years. The talks come amid AI-driven demand for compute infrastructure that has lifted data center valuations sharply this year: Pinterest committed $4 billion to AWS this week, and Nvidia chief Jensen Huang is in South Korea meeting the memory makers straining to supply AI chips, per Reuters. Sources: The Information, Reuters, Seeking Alpha.