Data center operator Switch weighs IPO at about $40 billion valuation, sources – 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.
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.
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Data center operator Switch weighs IPO at about $40 billion valuation, sources – Reuters. source
