Data Center Operator Switch Explores IPO at $40 Billion Valuation

Exclusive-Data center operator Switch weighs IPO at about $40 billion valuation, sources say

NEW YORK (Reuters) - The owners of Switch are exploring an initial public offering (IPO) of the data center operator that could value it at about $40 billion, including debt, according to people familiar with the matter. The discussions on an IPO for Switch are at an early stage, the sources said, cautioning that the plans are subject to market conditions and no final decisions have been taken. The investment firms that own Switch have in recent weeks held preliminary talks with investment bankers on the potential stock market flotation that could happen as early as 2025, the sources said, requesting anonymity as the discussions are confidential. The move comes at a time when investor interest in generative artificial intelligence is sky-rocketing. The AI boom, which has powered chipmakers such as Nvidia and other big tech firms, has turbocharged global demand for infrastructure such as data centers and high-powered servers. Las Vegas-based Switch was taken private by DigitalBridge and IFM Investors for $11 billion in 2022. Australian pension fund Aware Super bought a minority stake from Switch's owners in 2023. DigitalBridge, IFM and Aware Super declined to comment. Switch did not immediately respond to a request for comment. Dealmaking in the data center and server industry has also witnessed an uptick in recent months due to the proliferation of AI. Earlier in September, Blackstone clinched a deal to buy Australian data center group AirTrunk for more than A$24 billion ($16 billion). In August, AMD agreed to acquire server maker ZT Systems for $4.9 billion, as part of its efforts to expand its portfolio of AI chips and hardware and battle Nvidia. Founded in 2000 by technology entrepreneur Rob Roy, Switch counts Nvidia, Dell Technologies, and FedEx among its top customers. Since January 2016, Switch's data centers have been powered by renewable energy, according to its website. This makes its operations attractive to technology companies, which have environmental impact targets and are attempting to accelerate investments in decarbonization without inhibiting growth involving power-hungry data centers. The global data center boom is expected to produce about 2.5 billion metric-tons of carbon dioxide-equivalent emissions through the end of the decade, according to a recent report from Morgan Stanley. (Reporting by Echo Wang and David French in New York; Additional reporting by Lewis Jackson in Canberra; Editing by Sonali Paul)

Exclusive: Data center operator Switch weighs IPO at about $40 billion valuation, sources say

NEW YORK, Sept 10 (Reuters) - The owners of Switch are exploring an initial public offering (IPO) of the data center operator that could value it at about $40 billion, including debt, according to people familiar with the matter. The discussions on an IPO for Switch are at an early stage, the sources said, cautioning that the plans are subject to market conditions and no final decisions have been taken. The investment firms that own Switch have in recent weeks held preliminary talks with investment bankers on the potential stock market flotation that could happen as early as 2025, the sources said, requesting anonymity as the discussions are confidential. The move comes at a time when investor interest in generative artificial intelligence is sky-rocketing. The AI boom, which has powered chipmakers such as Nvidia (NVDA.O), opens new tab and other big tech firms, has turbocharged global demand for infrastructure such as data centers and high-powered servers. Las Vegas-based Switch was taken private by DigitalBridge and IFM Investors for $11 billion in 2022. Australian pension fund Aware Super bought a minority stake from Switch's owners in 2023. DigitalBridge, IFM and Aware Super declined to comment. Switch did not immediately respond to a request for comment. Dealmaking in the data center and server industry has also witnessed an uptick in recent months due to the proliferation of AI. Earlier in September, Blackstone clinched a deal to buy Australian data center group AirTrunk for more than A$24 billion ($16 billion). In August, AMD (AMD.O), opens new tab agreed to acquire server maker ZT Systems for $4.9 billion, as part of its efforts to expand its portfolio of AI chips and hardware and battle Nvidia. Founded in 2000 by technology entrepreneur Rob Roy, Switch counts Nvidia, Dell Technologies, and FedEx (FDX.N), opens new tab among its top customers. Since January 2016, Switch's data centers have been powered by renewable energy, according to its website. This makes its operations attractive to technology companies, which have environmental impact targets and are attempting to accelerate investments in decarbonization without inhibiting growth involving power-hungry data centers. The global data center boom is expected to produce about 2.5 billion metric-tons of carbon dioxide-equivalent emissions through the end of the decade, according to a recent report from Morgan Stanley. ($1 = 1.5017 Australian dollars) Reporting by Echo Wang and David French in New York; Additional reporting by Lewis Jackson in Canberra; Editing by Sonali Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab Echo Wang Thomson Reuters Echo Wang is a correspondent at Reuters covering U.S. equity capital markets, and the intersection of Chinese business in the U.S, breaking news from U.S. crackdown on TikTok and Grindr, to restrictions Chinese companies face in listing in New York. She was the Reuters' Reporter of the Year in 2020.

Data center operator Switch weighs IPO at about $40bln valuation, sources say

The owners of Switch are exploring an initial public offering (IPO) of the data center operator that could value it at about $40 billion, including debt, according to people familiar with the matter. The discussions on an IPO for Switch are at an early stage, the sources said, cautioning that the plans are subject to market conditions and no final decisions have been taken. The investment firms that own Switch have in recent weeks held preliminary talks with investment bankers on the potential stock market flotation that could happen as early as 2025, the sources said, requesting anonymity as the discussions are confidential. The move comes at a time when investor interest in generative artificial intelligence is sky-rocketing. The AI boom, which has powered chipmakers such as Nvidia and other big tech firms, has turbocharged global demand for infrastructure such as data centers and high-powered servers. Las Vegas-based Switch was taken private by DigitalBridge and IFM Investors for $11 billion in 2022. Australian pension fund Aware Super bought a minority stake from Switch's owners in 2023. DigitalBridge, IFM and Aware Super declined to comment. Switch did not immediately respond to a request for comment. Dealmaking in the data center and server industry has also witnessed an uptick in recent months due to the proliferation of AI. Earlier in September, Blackstone clinched a deal to buy Australian data center group AirTrunk for more than A$24 billion ($16 billion). In August, AMD agreed to acquire server maker ZT Systems for $4.9 billion, as part of its efforts to expand its portfolio of AI chips and hardware and battle Nvidia. Founded in 2000 by technology entrepreneur Rob Roy, Switch counts Nvidia, Dell Technologies, and FedEx among its top customers. Since January 2016, Switch's data centers have been powered by renewable energy, according to its website. This makes its operations attractive to technology companies, which have environmental impact targets and are attempting to accelerate investments in decarbonization without inhibiting growth involving power-hungry data centers. The global data center boom is expected to produce about 2.5 billion metric-tons of carbon dioxide-equivalent emissions through the end of the decade, according to a recent report from Morgan Stanley. ($1 = 1.5017 Australian dollars) (Reporting by Echo Wang and David French in New York; Additional reporting by Lewis Jackson in Canberra; Editing by Sonali Paul)

Data center operator Switch weighs IPO at about $40 bn valuation: Report

The owners of Switch are exploring an initial public offering (IPO) of the data center operator that could value it at about $40 billion, including debt, according to people familiar with the matter. The discussions on an IPO for Switch are at an early stage, the sources said, cautioning that the plans are subject to market conditions and no final decisions have been taken. Click here to connect with us on WhatsApp The investment firms that own Switch have in recent weeks held preliminary talks with investment bankers on the potential stock market flotation that could happen as early as 2025, the sources said, requesting anonymity as the discussions are confidential. The move comes at a time when investor interest in generative artificial intelligence is sky-rocketing. The AI boom, which has powered chipmakers such as Nvidia and other big tech firms, has turbocharged global demand for infrastructure such as data centers and high-powered servers. Las Vegas-based Switch was taken private by DigitalBridge and IFM Investors for $11 billion in 2022. Australian pension fund Aware Super bought a minority stake from Switch's owners in 2023. DigitalBridge, IFM and Aware Super declined to comment. More From This Section Swiggy plans to raise Rs 5,000 crore via fresh issue in upcoming IPO Investors subscribe PN Gadgil's IPO two times offer size on day 1 Ventive Hospitality files papers with Sebi to raise Rs 2,000 cr through IPO Swiggy's IPO plan includes Rs 5,000 cr fresh issue, exceeding initial aim PN Gadgil Jewellers collects Rs 330 cr from anchor investors ahead of IPO Switch did not immediately respond to a request for comment. Dealmaking in the data center and server industry has also witnessed an uptick in recent months due to the proliferation of AI. Earlier in September, Blackstone clinched a deal to buy Australian data center group AirTrunk for more than A$24 billion ($16 billion). In August, AMD agreed to acquire server maker ZT Systems for $4.9 billion, as part of its efforts to expand its portfolio of AI chips and hardware and battle Nvidia. Founded in 2000 by technology entrepreneur Rob Roy, Switch counts Nvidia, Dell Technologies, and FedEx among its top customers. Since January 2016, Switch's data centers have been powered by renewable energy, according to its website. This makes its operations attractive to technology companies, which have environmental impact targets and are attempting to accelerate investments in decarbonization without inhibiting growth involving power-hungry data centers. The global data center boom is expected to produce about 2.5 billion metric-tons of carbon dioxide-equivalent emissions through the end of the decade, according to a recent report from Morgan Stanley. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Also Read KKR's Agrawal calls industrial infra 'next big thing' in asset class Blackstone to buy Australia's data centre group AirTrunk in $16 bn deal Indian luxury homebuilder Rustomjee to expand into data centres on AI boom Alphabet's Google considering to build large data centre in Vietnam: Report China invests $6.1 billion in computing data center project, says official

Switch in talks to explore IPO at $40B valuation - report

Data center operator Switch was reportedly looking at an initial public offering, which could value the company at ~$40B, including debt. The talks of the potential IPO are at an early stage, Reuters reported, citing people familiar with the matter. No final decisions have been taken yet. There has been a surge in demand for data centers and other infrastructure in the recent times, given the artificial intelligence boom. The Nevada-based company was founded in 2000 by Rob Roy. The investment firms that own Switch, have held preliminary discussions with investment banks on the possible listing of the stock, which could happen next year, the Reuters report added. In 2022, funds affiliated DigitalBridge (DBRG) and an affiliate of IFM Investors had acquired all outstanding common shares of Switch for $34.25 per share in cash, or ~$11 billion in a take private deal.