Premarketing: Switch $767.6M data center ABS

Switch has completed its fourth asset-backed securities (ABS) offering, raising approximately $659 million, with proceeds allocated to fund growth initiatives across its five data center campuses serving hyperscale, AI, and enterprise clients according to company announcement. The transaction includes Class A-2 Notes rated AAA, AA (low), and A (low), and Class B Notes rated BBB (low) by DBRS Morningstar. This issuance brings Switch's total ABS proceeds to $3.5 billion since 2024, establishing the company as the largest single issuer of data center ABS in that period.

The offering marks Switch's first securitization dedicated entirely to new development, following the retirement of $6.5 billion in bank debt from its 2022 take-private transaction in July 2025. The company's ABS platform now supports 10 data centers across four geographically diverse campuses, serving nearly 500 customers, with over 70% of revenue derived from investment-grade tenants as reported. Switch's introduction of the first AAA-rated tranche in non-hyperscale data center ABS underscores its leadership in the sector and reinforces the credit quality of its assets according to company data.

Proceeds will advance Switch's strategy to expand its modular, sustainable infrastructure, aligning with its commitment to secured green bonds. The transaction was structured with advisory support from Wells Fargo Securities, RBC Capital Markets, and other major financial institutions, while legal counsel was provided by Kirkland & Ellis and Latham & Watkins as detailed in the announcement.

With $6 billion in stabilized asset financings completed to date, Switch aims to maintain an active presence in ABS and broader capital markets, supporting its position as a key player in AI, cloud, and enterprise data center solutions.