Switch in talks to raise funding at $50 billion-plus valuation as AI data center demand surges

The AI boom has created a new class of winners. They are not building chatbots or training large language models. They are building the infrastructure that makes those technologies possible.

Switch, one of the largest data center operators in the United States, is now looking to capitalize on that demand. The company is reportedly in talks to raise billions of dollars at a valuation of at least $50 billion, according to a report from The Information.

“Data center developer Switch is in talks to raise billions of dollars at a valuation of at least $50 billion, as it seeks to capitalize on soaring demand for the infrastructure needed to support artificial intelligence,” The Information reported, citing people with knowledge of the deal.

The fundraising discussions come at a time when investors are pouring money into the physical backbone of AI. Demand for data centers, servers, electricity, cooling systems, and networking equipment has surged as technology companies race to secure the computing capacity needed to train and run increasingly sophisticated AI models.

According to the report, Brookfield Asset Management, KKR, and other private equity and institutional investors have been in talks to participate in the funding round.

The deal could become one of the largest private financings in the AI infrastructure sector this year and may pave the way for an initial public offering as soon as next year.

Goldman Sachs and JPMorgan bankers are reportedly advising Switch on the fundraising effort.

The report underscores a broader shift taking place across the technology industry. Investors once focused much of their attention on software startups building AI applications. Today, a growing share of capital is flowing into the companies that provide the physical infrastructure behind AI, from data center operators and power providers to chipmakers and networking firms.

That trend has fueled a wave of dealmaking across the data center and server industry. Major technology companies are spending hundreds of billions of dollars to expand AI capacity, driving demand for facilities capable of housing massive clusters of Nvidia GPUs and other specialized hardware.

Founded in 2000 by CEO Rob Roy, Switch has spent more than two decades building large-scale data center campuses across the United States. The Las Vegas-based company serves a roster of blue-chip customers, including Nvidia, FedEx, Tesla, and Logitech, according to its website.

The timing of the fundraising effort reflects how dramatically the economics of data centers have changed over the past two years. Facilities that were once viewed as stable infrastructure assets are now being treated as strategic AI assets. Access to power, land, cooling capacity, and construction speed has become a competitive advantage as companies race to bring more computing resources online.

For investors, the appeal is straightforward. AI models may capture the headlines, yet every model depends on physical infrastructure. As long as demand for AI computing keeps rising, the companies supplying that infrastructure stand to benefit.

Switch appears determined to position itself at the center of that trend.