US data center firm Switch has secured billions of dollars in new financing to fund its build-out.

The company this week announced it has secured a $2.6 billion syndicated performance letter of credit (LC) facility, which it claims is the first of its kind in the data center industry.

The funds will enable Switch to procure power at scale and support the development of new transmission and generation resources across its campuses.

A syndicated LC is a jointly issued letter of credit supported by multiple banks (aka a syndicate) to share the financial exposure of a large transaction.

“This facility represents a significant advancement in how digital infrastructure companies secure power at scale,” said Switch’s chief investment officer, Jesse Burros. “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.”

Switch said the standalone performance LC facility, which is separate from Switch’s existing revolving credit and borrowing base facilities, backs obligations tied to new transmission and generation resources.

“Syndicating a standalone facility across multiple financial institutions enables Switch to access greater credit capacity at lower cost, while providing increased execution certainty to utilities and customers in power-constrained markets,” the company said.

Switch has now raised more than $24 billion in financing since 2024. Earlier this month, the company secured $768 million in ABS funding.

Founded in 2000, Switch operates its large 'Prime' data center campuses in Austin, Texas; Reno and Las Vegas, Nevada; Grand Rapids, Michigan; and Atlanta, Georgia. Over the last year, it has filed to expand further in Austin and Atlanta, and acquired more land in Las Vegas.

DigitalBridge, alongside IFM Investors, took Switch private in an $11bn deal in December 2022. Australian pension fund Aware Super invested $500m into Switch in 2023.

The performance LC facility was arranged with a syndicate of leading financial institutions. BBVA and Natixis Corporate & Investment Banking (Natixis CIB) served as structuring banks for the facility, initial coordinating lead arrangers, and joint bookrunners. BNP Paribas, Citibank N.A., and Société Générale acted as coordinating lead arrangers. CIBC, Rabobank, RBC, Scotiabank, and SMBC acted as joint lead arrangers, and Standard Chartered acted as mandated lead arranger. Natixis CIB will also serve as the administrative agent.

Milbank LLP acted as legal counsel to Switch, and Paul Hastings acted as lenders’ counsel.