Switch Secures $2.6 Billion Syndicated Credit Facility for Power Infrastructure Expansion
April 22, 2026
In a landmark move for the digital infrastructure sector, U.S. data center operator Switch has secured a $2.6 billion syndicated performance letter of credit facility, which the company describes as the first of its kind dedicated to data center power procurement. This innovative financing mechanism underscores the critical and growing challenge of securing reliable, large-scale power for energy-intensive data center operations.
The facility, arranged by a syndicate of leading global financial institutions, is designed to provide credit support for Switch's obligations related to developing new power transmission lines and generation resources across its national campus portfolio. Unlike traditional loans, this standalone facility is separate from Switch's existing revolving credit lines and is specifically structured to back long-term power purchase agreements and infrastructure commitments. The syndicate includes BBVA and Natixis CIB as structuring banks and joint bookrunners, with BNP Paribas, Citibank, and Société Générale among the coordinating lead arrangers.
Jesse Burros, Switch's chief investment officer, emphasized the strategic importance of the deal: "This facility represents a significant advancement in how digital infrastructure companies secure power at scale. Energy investments increasingly require credit support, and this broadly syndicated solution will lower our costs and streamline our ability to commit to large-scale development projects." The company stated that syndicating the facility across multiple banks enables access to greater credit capacity at a lower cost while providing increased execution certainty to utility partners and customers, particularly in power-constrained markets.
The financing is a key part of Switch's aggressive capital strategy, bringing its total funds raised since 2024 to over $24 billion, which includes a $768 million asset-backed securities issuance earlier this month. Switch, which was taken private by DigitalBridge and IFM Investors in late 2022 for $11 billion, operates major 'Prime' campuses in Texas, Nevada, Michigan, and Georgia and has been actively expanding its footprint in Austin, Atlanta, and Las Vegas.
Industry analysts view this transaction as a potential blueprint for other data center operators grappling with the dual pressures of rapid expansion and intensifying power scarcity. By creating a dedicated financial instrument for power infrastructure, Switch is not only securing its own growth pipeline but also signaling to the market that sophisticated, large-scale financing solutions are necessary to underpin the next phase of digital infrastructure build-out, where power availability is the primary constraint.
Source: datacenterdynamics
