Switch Raises $768M in Data Center ABS

Switch has closed a $768 million asset-backed securities (ABS) offering, reinforcing securitization as a core funding channel as demand for AI and cloud infrastructure accelerates.

The Series 2026-1 issuance includes Class A-2 Notes rated AAA, AA and A by DBRS Morningstar, with an anticipated repayment date of March 2031. Proceeds will be used to refinance existing debt and support general corporate purposes.

The transaction incorporates a 1.4 million-square-foot data center in Reno, Nevada into the securitized pool, adding more than 52 megawatts of capacity and expanding the platform into a fifth U.S. market. Following the issuance, Switch’s securitized portfolio comprises 11 data centers serving over 550 customers, with approximately 84% of revenue tied to investment-grade counterparties.

The deal marks Switch’s fifth ABS issuance since 2024, bringing total issuance over that period to roughly $4.2 billion. All transactions have been structured as secured green bonds, aligning with investor demand for sustainable infrastructure exposure.

“Supported by strong visibility into long-term contracted demand from a high-quality customer base, we view securitization as a core funding strategy and remain focused on disciplined capital formation and a measured approach to leverage as we execute on our growth,” said Madonna Park, CFO of Switch.

Barclays and Citigroup served as co-structuring advisors and joint active bookrunning managers. BMO Capital Markets and Truist also participated as joint active bookrunning managers. Kirkland & Ellis LLP advised Switch, and Latham & Watkins LLP represented the underwriters.

Pictured: Citadel Campus – Tahoe Reno 01 Facility