Switch plans IPO to raise up to $10B, targeting ~$80B valuation

Source: CRE Daily Author: Nina Dale Reading Time: 4 min

This story was originally published on CRE Daily. Join 70,000+ commercial real estate professionals getting daily news, market insights, and industry analysis delivered straight to their inbox with the free CRE Daily newsletter.

Key Takeaways

• Data center operator Switch is planning an IPO that could raise up to $10 billion and value the firm near $80 billion.
• The move follows a period when most major data center companies left public markets, favoring private capital for expansion.
• A wave of new IPOs in the digital infrastructure space suggests Wall Street is regaining favor as private capital sources grow strained.

Private Equity Exit Set the Stage

The last several years saw major data center players, including Switch, move away from public listings as private equity and pension funds snapped up sector leaders. According to Bisnow, Switch was taken private in 2022 by DigitalBridge and IFM Investors in a deal worth $11 billion, after previously debuting on the NYSE in 2017. Blackstone, KKR, Global Infrastructure Partners, and American Tower led similar deals totaling over $35 billion for QTS Data Centers, CyrusOne, and CoreSite between June 2021 and early 2022.

By 2023, only Digital Realty and Equinix remained as pure-play data center REITs in public markets. The sector's heavy capex profile aligned well with the deep pockets and patience of private investors eager to fund the industry's rapid, AI-fueled expansion.

The Details

Switch, headquartered in Las Vegas, selected Goldman Sachs and JPMorgan Chase as its lead underwriters and could hit the public markets as soon as Q4, per Reuters. The potential offering may raise up to $10 billion, implying a valuation close to $80 billion—one of the largest US IPOs in years.

Switch operates large-scale data center campuses in markets such as Austin, Las Vegas, Reno, Atlanta, and Grand Rapids, Michigan, and positions itself as a leader in renewable-powered digital infrastructure; its assets have run on renewable energy since 2016. To support accelerated growth and facility upgrades for AI demand, Switch recently expanded its debt facility to $9.5 billion and considered a private funding round at over $40 billion valuation earlier this year.

IPO Flurry Follows Private Capital Plateau

The renewed interest in public offerings comes as the massive availability of private capital begins to wane. In the last year, digital infrastructure companies like Brookfield-backed CSquare and SoftBank-backed SBEnergy have disclosed IPO plans, targeting $1.35 billion and over $50 billion valuations, respectively. Blackstone's Digital Infrastructure Trust completed a $1.75 billion IPO for its REIT in early July.

The offering reinforced growing public market demand for data center assets as private funding becomes more constrained. In the tech-adjacent space, SpaceX raised $75 billion in its June IPO, while core AI and cloud computing players such as Anthropic, OpenAI, and CoreWeave have all taken steps toward public listings. This growing list of IPO filings in 2025 and 2026 signals a reversal from the take-private trend between 2021 and 2023.

Why It Matters

Switch's public listing move is a bellwether for the digital infrastructure sector, reflecting a pivotal shift in how these capital-intensive businesses source growth capital. As investors discuss whether the golden era of unlimited private equity in data centers is reaching its limits, companies are viewing the public markets as critical sources of long-term funding and exit liquidity for institutional backers.

According to Reuters, Switch's expected $80 billion valuation would place it among the top tech IPOs of the decade, potentially restoring data center peer group comparisons.