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?

Switch is well-aligned to our investment philosophy, providing us with the means to invest in what matters most – real assets that serve society’s needs:

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.

Unlocking value in mid-market infrastructure

Discover how mid-market infrastructure is well-positioned to benefit from the macro trends of digitalisation, deglobalisation, and decarbonisation.

Abbie Sui

Director, Portfolio Management, Infrastructure

Aaron McGovern

Executive Director, Infrastructure

Envisaging and enabling cities of the future

Cities are facing the pressures of rising urbanisation, ageing assets and constrained public balance sheets. However, we believe a series of incremental infrastructure investments across energy, water and mobility networks can help them meet these needs.