Data center firm Switch taps banks for IPO

July 13 (Reuters) - Data center operator Switch has hired investment banks for an initial public offering ‌that could raise up to $10 billion as soon as the fourth quarter, according to two people familiar with the matter, and value the company at close to $80 billion, including debt.

Goldman Sachs (GS), opens new t and JPMorgan Chase (JPM), opens new tab have been tapped as lead underwriters for the offering, the people said. ​The size, timing and valuation remain under discussion and could still change, the sources said, requesting anonymity because ​the deliberations are confidential.

Switch operates large-scale data center campuses that provide the power, cooling and connectivity needed to support AI computing, allowing cloud providers and ​enterprises to deploy energy-intensive GPU clusters used for training and running artificial intelligence models.

Data centers have become critical to the AI infrastructure buildout, as companies race to secure computing capacity needed to train and deploy increasingly powerful models. Investors have also shown interest in companies supporting the broader AI infrastructure ecosystem, ​with upcoming public offerings such ​as SoftBank-backed SB Energy’s IPO ⁠adding to the pipeline of large technology and infrastructure listings.

The pipeline also includes Brookfield-backed data center provider Csquare, which is targeting a valuation of up to $4.18 billion in its U.S. ​initial public offering. AI chipmaker Cerebras Systems (CBRS) surged in its market debut in May after ​the company ⁠raised $5.55 billion in its IPO.

Las Vegas-based Switch was taken private by DigitalBridge and IFM Investors for $11 billion in 2022. Australian pension fund ⁠Aware Super ​bought a minority stake from Switch's owners in 2023. The company was ​founded in 2000 by Chief Executive Rob Roy.

Switch's data centers have been powered by renewable energy since 2016, a feature that may appeal to technology ​companies with decarbonization targets.

==Fermi America (FRMI) began trading on the Nasdaq on Wed 1 Oct 25

 

Founded by Rick Perry, Toby Neugebauer and Griffin Perry on January 10, 2025

Headquartered in Amrillo, TX.

Opened at $25 after pricing upsized 32.5 mln share IPO at $21, towards the high end of the $18-$22 expected price range

Fermi America provides IPO market with a jolt as advanced energy and hyperscaler development company storms out of the gate 

• Fermi America's (FRMI) IPO drew strong demand as the upsized 32.5 mln share deal (from 25.0 mln) priced at $21, towards the upper end of the $18-$22 expected price range. The strong pricing carried over into the public market where FRMI opened for trading at $25 -- good for a 19% opening pop -- with shares currently trading near $26.
• The company is a Texas-based data center real estate investment trust (REIT) co-founded by former U.S. Energy Secretary Rick Perry. FRMI aims to develop "Project Matador," a massive energy and data center complex in Amarillo, Texas, designed to deliver up to 11 gigawatts of power by 2038 using nuclear, natural gas, solar, and battery storage. This initiative is poised to support the growing demand for AI infrastructure.
• Despite being founded in January 2025 and reporting a $6.4 mln loss through June 30, 2025, with no revenue, FRMI's IPO raised $682.5 mln in proceeds.
• Investor interest was driven by the company's strategic focus on AI infrastructure, the potential for long-term growth in this sector, and its REIT structure offering potential dividends.

Chinese data center operator Yovole to consider US IPO

Yovole Networks is a provider of data center and cloud computing services. The company provides information solutions to enterprises through cloud computing models, including cloud desktops, cloud hosts, cloud storage, cloud communications, cloud mailboxes, cloud office and other products.

This enterprise-level cloud computing operator that has built data centers of more than 100,000 square meters. 

• Founded in 2001 
• Headquartered in Shanghai, China
• https://www.yovole.com/

(Bloomberg) -- Yovole is considering an initial public offering in the US, people familiar with the matter said, years after the Chinese data center operator’s failed attempt to list in mainland China.

The company, which is backed by Beijing-based alternative asset manager CDH Investments, is working with an adviser on a potential first-time share sale that may help it raise more than $100 million, the people said, asking not to be identified discussing a private matter. Yovole may consider submitting a confidential filing with US regulators as soon as in January, the people said.

Founded in 2001, Yovole, or “You Fu” in Chinese, provides cloud computing data center services in China, operating in major cities including Beijing, Shanghai, Guangzhou and Shenzhen, according to its website.

The company has counted big technology firms and financial institutions including Alibaba Group Holding Ltd., Tencent Holdings Ltd. and China UnionPay Co. as clients, according to a filing in 2020 when Yovole was attempting an IPO in China.

Switch (SWCH) began trading on the NYSE on 6 October 2017

Note" Data center operator Switch, Inc. was acquired by DigitalBridge and IFM Investors in December 2022 for $11 billion ($34.25 per share) and taken private. As a result, its stock (ticker: SWCH) was delisted from the NYSE.

Switch is a company based in Las Vegas, Nevada. The company is the developer and operator of the SUPERNAP, data center facilities, and provides colocation, telecommunications, cloud services, and content ecosystems.

• Data center REIT
• Headquarters: Las Vegas, NV
• Founded: 2000
• switch.com

The data-center operator was valued at around $4.2 billion in a 31.3 million share IPO. The company raised $531.3 million in the offering, with shares priced at $17, above the expected the range of $14 to $16.

That makes it the largest U.S. technology IPO since Snap went public in March, according to Renaissance Capital.

Shares opened at $21.70 a share on Friday. The stock is traded on the New York Stock Exchange under the ticker symbol SWCH.

Switch, based in Las Vegas, rents cloud service infrastructure to clients including Amazon, eBay and PayPal.

The company posted net income of $35.3 million for the six months ended June 30, flat compared with the year-ago period, according to its prospectus.

Because Switch's data centers are energy efficient and the company tends to hang on to customers for several years, Switch aims to be well-positioned to capitalize on data-intensive technology trends like the Internet of Things, wearable devices and autonomous vehicles, the prospectus said. Switch plans to use the funds for its IPO to expand its main campuses and enter new regions in the U.S.

The IPO was underwritten by Goldman Sachs & Co, J.P.Morgan, BMO Capital Markets and Wells Fargo Securities.