Switch Raises $2.6 Billion in First-of-Its-Kind Syndicated Letter of Credit Facility for Data Center Power Development Switch has secured a $2.6 billion syndicated performance letter of credit facility, which the company claims is the first of its kind in the data center industry, as it moves to accelerate the build-out of transmission and generation resources across its campus network.

A New Financing Structure for Power Procurement

The facility, announced this week, is a syndicated performance letter of credit supported by a consortium of financial institutions. A syndicated letter of credit is a jointly issued instrument backed by multiple banks — referred to as a syndicate — that share the financial exposure of a large transaction. Switch said the funds will enable the company to procure power at scale and support the development of new transmission and generation resources across its campuses.

Switch's chief investment officer, Jesse Burros, described the facility as a significant advancement in how digital infrastructure companies approach large-scale energy commitments. "Energy investments increasingly require credit support, and this broadly syndicated solution will lower our costs and streamline our ability to commit to large-scale development projects," Burros said. The facility is structured as a standalone instrument, separate from Switch's existing revolving credit and borrowing base facilities, and it specifically backs obligations tied to new transmission and generation resources.

According to the company, syndicating the facility across multiple financial institutions provides access to greater credit capacity at lower cost, while also offering increased execution certainty to utilities and customers operating in power-constrained markets.

Who Arranged the Deal

The facility was arranged with a syndicate of leading financial institutions drawn from across the banking sector. BBVA and Natixis Corporate and Investment Banking served as structuring banks for the facility, as well as initial coordinating lead arrangers and joint bookrunners. BNP Paribas, Citibank N.A., and Société Générale acted as coordinating lead arrangers.

CIBC, Rabobank, RBC, Scotiabank, and SMBC acted as joint lead arrangers, and Standard Chartered acted as mandated lead arranger. Natixis Corporate and Investment Banking will also serve as the administrative agent for the facility. Milbank LLP acted as legal counsel to Switch, while Paul Hastings acted as lenders' counsel.

Part of a Broader Financing Push Since 2024

The $2.6 billion facility is the latest in a sustained period of capital raising for Switch.

With this transaction, the company says it has now raised more than $24 billion in financing since 2024. Earlier this month, Switch secured $768 million in asset-backed securities funding, adding to the accumulation of capital the company has been assembling to support its infrastructure ambitions. The scale of the financing reflects the growing capital demands facing data center operators as they attempt to secure reliable power in markets where grid capacity is increasingly constrained.

Switch's framing of the performance letter of credit facility as an industry first underscores the degree to which conventional financing instruments are being adapted or replaced by more specialized structures to meet the specific demands of large-scale power procurement and infrastructure development.

Switch's Campus Footprint and Expansion Plans

Founded in 2000, Switch operates what it calls Prime data center campuses in multiple major markets across the United States. Its current locations include Austin, Texas; Reno and Las Vegas, Nevada; Grand Rapids, Michigan; and Atlanta, Georgia. Over the past year, the company has filed to expand further in both Austin and Atlanta, and has also acquired additional land in Las Vegas, signaling continued geographic growth within its existing campus network.

Ownership and Prior Investment

Switch was taken private in December 2022 through an $11 billion deal led by DigitalBridge alongside IFM Investors.

The following year, Australian pension fund Aware Super invested $500 million into the company, adding institutional backing to the platform as it pursued its expansion strategy. The latest facility adds a new layer to the company's financing structure at a moment when data center operators across the industry are competing to secure power capacity ahead of surging demand driven by artificial intelligence workloads and cloud infrastructure build-outs. Switch's move to formalize credit support for transmission and generation commitments through a broadly syndicated instrument reflects the degree to which energy infrastructure has become central to data center development strategy, particularly in markets where utilities and grid operators require long-term commitment certainty before approving new connections or capacity allocations.