Data center firm Switch has secured new funding via asset securitization.

The company this week announced the closing of an asset-backed securities (ABS) offering, raising approximately $768 million through its Series 2026-1 issuance.

ABS is a type of financial investment that is collateralized by an underlying pool of assets – in this case, data centers.

The proceeds from the offering will be used to repay existing debt and for general corporate purposes.

The issuance, which is anticipated to be repaid in March 2031, is backed by a 1.4 million sq ft (130,065 sqm), 52MW data center in Reno, Nevada.

"The continued execution of our ABS program reflects the strength of our business and the consistency of our approach in the capital markets," said Madonna Park, CFO of Switch. "Supported by strong visibility into long-term contracted demand from a high-quality customer base, we view securitization as a core funding strategy and remain focused on disciplined capital formation and a measured approach to leverage as we execute on our growth."

This latest transaction represents Switch's fifth ABS issuance since 2024, totaling approximately $4.2 billion. In total, Switch’s securitized pool includes 11 data centers across five US markets, serving more than 550 customers. All of Switch’s ABS issuances qualify as secured green bonds.

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.

Barclays and Citigroup served as co-structuring advisors and joint active bookrunning managers. BMO Capital Markets and Truist also participated as joint active bookrunning managers. Kirkland & Ellis LLP advised Switch, and Latham & Watkins LLP represented the underwriters.