Switch, Inc
Overview
Harnessing the power of connections, navigating the AI revolution
Switch, Inc (Switch) operates 20 data centers across the US.
Funds advised by IFM Investors acquired a stake in Switch via a take-private transaction in December 2022, which was completed alongside DigitalBridge. Currently, DigitalBridge holds a majority stake in the company (55.8%), with Switch management holding 7.0%, and funds advised by IFM holding the remainder (37.2%).
Why did we invest in Switch?
An essential infrastructure asset
For the internet to function effectively, data centres are essential. And with advances in AI, demand for data centres only looks set to increase over the coming years.*
Growth potential
Switch’s data centres are in areas offering relatively low-cost land, power and labor (e.g. Las Vegas and Reno), while serving adjacent large and growing markets (e.g. southern California and Silicon Valley). Importantly, the expansion of existing campuses is at the heart of the company’s growth strategy.
Stability of customer base and revenue model
Strong customer retention then lends itself to stable cash flows. Switch has grown steadily over the last 20 years, holding its own through various market cycles.
Our active approach: What’s been the focus since 2022?
Private ownership has given Switch a new and accelerated growth trajectory. We believe the opportunity is huge – not only is demand for data centres increasing, Switch is also in a strong position relative to peers. That said, to capitalize on this opportunity, Switch needs to successfully navigate a market that is dynamic and evolving. That’s where we come in:
Improving decision making and planning
Ensuring the right people are in place
Expanding access to capital markets
The outcome
- Greater efficiencies in reporting and decision making, providing the means for Switch to act more nimbly in pursuit of its ambitious growth targets.
- Alignment between Switch management and the company’s new shareholders.
- Critical teams that are well resourced, and supportive of the company’s strategic vision.
*Unless otherwise specified, all data included within this case study is sourced from IFM/Switch, Inc.
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Case studies are provided for illustrative purposes only and should not be relied on to make an investment decision. This case study was chosen because it demonstrates IFM’s active approach to infrastructure investing. This material is provided for informational purposes only. This material does not constitute an offer, invitation, solicitation, or recommendation in relation to the subscription, purchase, or sale of securities in any jurisdiction and neither this material nor anything in it will form the basis of any contract or commitment. Past performance does not guarantee future results. The value of investments and the income derived from investments will fluctuate and can go down as well as up. A loss of principal may occur. This material is confidential and should not be distributed or provided to any other person without the written consent of IFM Investors. IFM-14APR2025-4356006
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