Switch Ltd. Expands Data Center Footprint in Las Vegas

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Switch Ltd.'s data center facility emphasizes security and sustainability.

News Summary

Switch Ltd., a Las Vegas-based data center owner, has acquired 7 acres of land for $15 million to expand its operations. This strategic purchase, located near existing facilities, underscores the company’s growth amid increasing demand for data storage. Switch’s data centers are known for their security and sustainability, attracting big names like Google and PayPal. The acquisition comes at a time when Southern Nevada faces challenges in land availability for development. As the company continues to grow, its impact on the local economy will be significant.

Las Vegas – Switch Ltd., a prominent Las Vegas-based data center owner, has made a significant investment in the area by acquiring 7 acres of land for $15 million. This transaction was finalized in late April and marks another strategic move by the company to expand its operational footprint.

The newly purchased land is situated along Warm Springs Road, just west of Decatur Boulevard. This location is advantageous as it is near several existing Switch-operated data centers, which serve as secure facilities for storing computer servers and client data. The company’s data centers are characterized by their fortified structures, high walls, and armed security, underscoring their commitment to safety and data protection.

Switch operates facilities not only in Nevada but also extends its services to Texas, Michigan, and Georgia, reflecting its national presence in the data center market. Its client base includes high-profile companies such as Google, PayPal, Hulu, Verizon, Sony, Tesla, Trader Joe’s, Station Casinos, MGM Resorts International, and Caesars Entertainment. Such endorsements by leading organizations highlight Switch’s reputation for reliability in a sector that demands utmost security and efficiency.

As of 2021, Switch managed nine data centers in Las Vegas, forming what it describes as The Core Campus. This expansive area provides over 2.3 million square feet of operational space and a capacity of up to 311 megawatts of renewable power. This commitment to sustainability is part of a broader trend in the tech industry, where data centers are increasingly designed to reduce their carbon footprint.

In a noteworthy development in December 2022, Switch was acquired by DigitalBridge Group and IFM Investors in a deal valued at around $11 billion. This acquisition transitioned the company to a private entity, setting the stage for further growth and expansion potential amid a burgeoning market for data storage needs, particularly given the increasing demand for cloud services and digital infrastructure.

Regional Implications and Future Prospects

The expansion of data centers in Las Vegas is not occurring in a vacuum. The Las Vegas Convention and Visitors Authority has announced plans to ramp up advertising while concurrently reducing construction spending due to anticipated declines in visitation. This context shapes the economic landscape in which Switch is expanding, as the area balances various investment priorities against tourism fluctuations.

Moreover, NV Energy’s president and CEO is stepping down for a new opportunity, with a senior VP taking over the position, presenting another dynamic in the region’s energy management, essential for powering data centers like those operated by Switch.

The broader context of land usage in Southern Nevada is also shifting. Recent comments from Governor Joe Lombardo warn that the region may run out of land to develop by 2032 unless more parcels are released by the federal government. Currently, the federal government controls approximately 80% of state lands. Such issues present ongoing challenges for any company, including Switch, that seeks to expand its physical infrastructure in the future.

In addition to these developments, other regional news includes a new Southwest Airlines policy requiring passengers to keep portable chargers visible to mitigate lithium battery fire risks on flights. Recently, there has been public interest surrounding the estate of Tony Hsieh, with attorneys investigating his will, which surfaced more than four years after his death.

As Switch Ltd. continues to grow and adapt to the evolving market, its impact on the Las Vegas economy and the data storage landscape remains a significant story to watch. The company’s recent land acquisition is a clear indicator of its ambitions and the importance of data centers in an increasingly digital world.