Switch Expands Credit Facilities to Nearly US$10bn to Secure Power for AI Data Centers
June 13, 2026
Switch Expands Credit Facilities to Nearly US$10bn to Secure Power for AI Data Centers
Switch has expanded its total credit facilities to nearly US$10 billion, a strategic move to secure the energy procurement and utility relationships essential for powering large-scale artificial intelligence data center projects. The financing, structured through two key instruments, underscores a growing trend in the data center industry where access to capital is becoming a critical mechanism for locking in power commitments.
The data center provider extended and upsized its Corporate Revolving Credit Facility to more than US$6 billion, while simultaneously expanding its Syndicated Uncommitted Performance Letter of Credit Facility to US$3.5 billion. According to Switch, these facilities provide the liquidity and credit support capacity needed to advance contracted development and secure energy resources for AI and cloud deployments.
A central challenge driving this expansion is the changing dynamic between data center developers and utilities. As AI deployments surge electricity demand, utilities are requiring greater financial assurance before allocating power to large-scale projects. Switch’s expanded letter of credit facility (LCF) directly addresses this procurement hurdle by providing performance letters of credit to utilities and counterparties involved in power procurement and energy infrastructure projects, guaranteeing that obligations tied to development will be fulfilled.
Madonna Park, Chief Financial Officer of Switch, emphasized the company’s integrated approach to campus development, energy procurement, and facility design. “Switch has spent decades building an integrated platform to address grid constraints, from large-scale campus development to power procurement and advanced data centre design,” she said. The company says the financing capacity provides the flexibility to invest in projects under contract while supporting customer demand for AI and cloud infrastructure.
The expanded facilities support Switch’s plans for AI data center campuses that require significant transmission and generation resources. The increased credit support capacity will help secure these resources for future developments, providing project visibility and coordination between developers, utilities, and stakeholders. Power procurement has become a critical component of data center project planning, often requiring financial commitments before a facility becomes operational. Switch says the additional financing capacity gives it greater flexibility to invest in its contracted pipeline, allowing the company to support customer demand while delivering infrastructure with discipline and reliability.
The expanded LCF builds on a US$2.6 billion syndicated performance letter of credit facility announced previously, which Switch described as the first facility of its kind in the data center industry. Jon Edwards, Executive Vice President and Head of Capital Markets at Switch, noted the significance of the transaction. “This transaction reflects the strength of Switch’s platform and the continued confidence of leading financial institutions in our contracted development pipeline,” he said. “By upsizing our corporate revolver and letter of credit capacity, we are further strengthening our liquidity position and supporting disciplined capital deployment for Switch’s next phase of growth.”
Multiple financial institutions participated in the transaction. TD Securities and Wells Fargo led the Corporate Revolving Credit Facility as initial coordinating lead arrangers, joint bookrunners, and structuring banks. BBVA and Natixis Corporate & Investment Banking led the LCF as initial coordinating lead arrangers, joint bookrunners, structuring banks, and issuing banks. Milbank LLP acted as legal counsel to Switch, while Paul Hastings acted as counsel to the lenders.
Source: procurementmag
