Switch, a leading global provider of AI, cloud, and enterprise data centers, announced the closing of its fourth asset-backed securities (ABS) offering, raising nearly $659 million. The latest issuance further solidifies Switch’s position as the largest single issuer of data center ABS since 2024, with cumulative proceeds now reaching approximately $3.5 billion.
The newly issued Class A-2 Notes received ratings of AAA, AA (low), and A (low), while the Class B Notes were rated BBB (low) by DBRS Morningstar. Notably, all of Switch’s ABS issuances qualify as secured green bonds, underscoring the company’s dedication to sustainability and responsible infrastructure expansion.
The proceeds from this transaction will fund the continued growth of Switch’s five-campus portfolio, which supports Hyperscale, AI, and enterprise customers. These funds will drive the development of advanced data center infrastructure and the expansion of capacity in response to accelerating demand for AI computing and cloud services.
This offering follows Switch’s announcement in July 2025 that it had retired all $6.5 billion of bank debt incurred during its 2022 take-private transaction. The new ABS marks the company’s first securitization dedicated entirely to growth and new development. This shift demonstrates both the maturity of its capital structure and its confidence in forward expansion.
Switch’s enterprise ABS platform now spans 10 data centers across four geographically diverse campuses, serving nearly 500 customers, with over 70% of revenue generated from tenants rated investment grade. This strong credit profile allowed the company to introduce the first AAA-rated tranche in non-hyperscale data center ABS—a significant sector milestone and an indication of growing investor confidence in Switch’s financial and operational strength.
The company’s strategic focus on high-efficiency, exascale data campuses located in Tier 1 markets continues to attract both top-tier tenants and institutional investors. The ABS platform allows Switch to access low-cost capital while maintaining flexibility to recycle funds into future expansion, particularly to serve the surging demand from AI and cloud computing clients.
Advisors and Counsel: Wells Fargo Securities served as Co-Structuring Advisor and Lead Left Bookrunner, and RBC Capital Markets, LLC served as Co-Structuring Advisor and Joint Active Bookrunning Manager. Morgan Stanley, TD Securities, and Truist served as Joint Active Bookrunning Managers. Kirkland & Ellis advised Switch, and Latham & Watkins represented the underwriters.
KEY QUOTES:
“The success of this transaction, and the overall growth of our platform, clearly demonstrate that our formula of leading-edge technology combined with exascale campus deployments in Tier 1 markets continues to resonate with customers and investors alike. As our deep pipeline of fully leased multi-tenant and Hyperscale assets continues to stabilize, we expect to remain an active issuer across the ABS and broader capital markets.”
“With roughly $6 billion of stabilized asset financings completed to date, we have the scale and track record to continue to efficiently recycle capital while supporting the largest AI, cloud and enterprise customers, as they grow with Switch.”
Madonna Park, Chief Financial Officer, Switch
