News Summary
Switch, a Las Vegas-based data center company, has raised $20 billion through sustainable financing to fund expansion projects and reduce debt. This capital will support the development of AI factories across the nation, emphasizing eco-friendly operations. With a focus on enhancing computing capabilities, Switch aims to meet the growing demand for AI technologies while solidifying its position as a key player in the tech infrastructure market. The company continues to expand rapidly following its acquisition in 2022, attracting major corporate clients and contributing to economic growth in Las Vegas.
Las Vegas – Switch, a data-center owner headquartered in Las Vegas, has secured $20 billion in financing over the past year to aid its expansion and reduce corporate buyout debt. This significant capital has been raised through sustainable financing mechanisms including green loans and green bonds, which are specifically designed to fund environmentally responsible projects.
The new funding features an increase in Switch’s borrowing base and revolving credit lines, which now totals $10 billion. The financial resources will be allocated to the growth of Switch’s data-center campuses across the nation, allowing the company to retire bank debt related to its 2022 acquisition and lower its overall cost of capital.
A notable aspect of this funding is its focus on developing AI factories, specialized data centers aimed at supporting artificial intelligence systems with enhanced computing capabilities. AI factories are distinct from conventional data centers because they utilize innovative air-and-liquid-cooling designs that accommodate high computing power densities. These facilities are pivotal in meeting the increasing demand for AI technologies.
Construction of the AI factories is currently underway at all five of Switch’s campuses nationwide, with significant developments taking place in the southwest Las Vegas Valley. This site is strategically located near existing data centers, particularly along Jones Boulevard, just south of the 215 Beltway. Plans document a 199,000-square-foot data-center warehouse alongside additional facilities of about 228,000 square feet, as recorded by Clark County.
Switch operates facilities not only within Nevada but also in Texas, Michigan, and Georgia. Following its acquisition by DigitalBridge Group and IFM Investors for around $11 billion in 2022, the company has expanded its operations considerably, seeking to benefit from the growing demand for tech infrastructure.
Among its distinguished clientele, Switch serves major corporations such as Google, Verizon, Sony, MGM Resorts International, and Caesars Entertainment. Given the nature of its operations, security at Switch facilities is robust, with high walls topped with spikes and the presence of armed security personnel ensuring the protection of sensitive data and infrastructure.
Upon full build-out, the Switch Core Campus is anticipated to deliver up to 495MW of power, reflecting the company’s commitment to integrating high-capacity power solutions tailored for modern computing demands. Their state-of-the-art AI factories are influenced by designs from Nvidia, a leading player in AI hardware, underscoring Switch’s alignment with cutting-edge technology and best practices in the sector.
This funding and expansion align with a broader trend in Las Vegas, where a significant surge in tech hiring is predicted for this year, bolstering the area’s position as a burgeoning technology hub. The emphasis on sustainable finance further underscores a growing recognition of the importance of environmental, social, and governance (ESG) considerations in corporate development and operational strategies.
In summary, Switch’s ambitious expansion and debt reduction plans, underpinned by substantial sustainable financing, position the company at the forefront of the AI and data center industry, while contributing to broader economic growth in Las Vegas.
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Additional Resources
- Data Center Dynamics
- Wikipedia: Data Center
- Las Vegas Review-Journal
- Google Search: Switch AI factories Las Vegas
- MSN Money
- Google Scholar: AI factories
- Daily Gazette
- Encyclopedia Britannica: Artificial Intelligence
- PR Newswire
- Google News: Switch data center expansion
