Switch stock (US87087X1090): data center operator after take-private deal stays on investors’ radar

Switch, the US data center specialist, was taken private by DigitalBridge and IFM in late 2022. Fresh interest in AI infrastructure and recent sector news are putting the former Nasdaq listing back into focus for some investors following legacy Switch stock.

Switch, the Las Vegas–based data center operator known for its high-security "Prime" campuses, has been off the public markets since its acquisition by a fund managed by DigitalBridge and an affiliate of IFM in December 2022, but the company continues to draw attention as investors reassess the value of data center infrastructure in the era of cloud and artificial intelligence, according to a merger closing announcement published on 12/15/2022 by the company and DigitalBridge Switch investor relations as of 12/15/2022.

The transaction, valued at roughly 11 billion USD including debt and representing 34.25 USD per share in cash, removed Switch from Nasdaq but locked in a premium for shareholders at the time, while under private ownership the company has been focusing on expanding its data center footprint and integrated connectivity services in the US, as described in the same closing communication and related deal overview from DigitalBridge DigitalBridge as of 12/15/2022.

As of: 17.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: SWCH (formerly Switch Inc)
• Sector/industry: Data centers, colocation, digital infrastructure
• Headquarters/country: Las Vegas, United States
• Core markets: Enterprise and cloud customers in the US
• Key revenue drivers: Colocation capacity, power, connectivity services
• Home exchange/listing venue: Formerly Nasdaq (ticker: SWCH) until December 2022
• Trading currency: US dollar (while listed)

Switch: core business model

Switch built its business around large-scale, high-density data center campuses that combine colocation, connectivity and power in tightly controlled environments designed for mission-critical workloads. The company marketed its facilities as "technology ecosystems" with integrated network access and robust physical security designed to appeal to enterprise and government customers, according to its historical filings summarizing operations for the year 2021 that were published in early 2022 Switch Form 10-K as of 03/04/2022.

Before the take-private transaction, Switch operated major campuses in Las Vegas, Reno, Grand Rapids (Michigan) and Atlanta, providing customers with scalable whitespace and access to a broad mix of carriers and cloud on-ramps. The model relied on signing long-term contracts that monetized not only square footage but also power capacity and connectivity, which provided a relatively visible revenue stream over multi-year periods, as outlined in the same 10-K discussion of contract structure and colocation services for the fiscal year 2021 Switch Form 10-K as of 03/04/2022.

Management emphasized a focus on design and engineering to support high power densities and energy efficiency, positioning Switch as a provider capable of hosting advanced workloads, including cloud, big data analytics and, increasingly, AI training and inference workloads. While detailed post-2022 financials are not publicly available due to the private ownership structure, DigitalBridge has characterized Switch as a key platform for expanding its digital infrastructure portfolio in North America in its communications around the acquisition close in December 2022 DigitalBridge as of 12/15/2022.

Main revenue and product drivers for Switch

The primary revenue stream for Switch historically came from colocation services, where customers rented secure racks, cages or suites in the company’s data centers and paid recurring fees based on space, power and connectivity. In its 2021 annual report, Switch reported that colocation and related services, including connectivity and cross-connects, represented the vast majority of total revenues for the year ended 12/31/2021, while professional services and other revenue streams played a smaller role, according to the segment breakdown described in the filing published on 03/04/2022 Switch Form 10-K as of 03/04/2022.

Another important driver for the business was power density, which allowed Switch to host more compute per square foot and attract high-performance computing and cloud workloads. This, in turn, supported premium pricing for certain deployments and encouraged customers to expand over time. Prior to the acquisition, management highlighted in its quarterly commentary for the third quarter of 2021 that expansions by existing customers were a key source of growth and that the pipeline included both enterprise and cloud platform deals, as noted in the Q3 2021 earnings release dated 11/04/2021 Switch investor relations as of 11/04/2021.

Connectivity services, such as cross-connects between tenants and access to a broad mix of network providers, acted as an additional monetization layer. For many customers, the ability to interconnect with cloud platforms, partners and carriers within the same campus was a decisive factor in choosing Switch, rather than simply the availability of space. That dynamic supported relatively low churn in prior years, although updated metrics post-2022 have not been disclosed publicly since the company’s shares ceased trading after the December 2022 closing Switch investor relations as of 12/15/2022.

Conclusion

Switch is no longer listed on public markets after its December 2022 take-private transaction led by DigitalBridge and IFM, but the company remains relevant for investors following the broader data center and digital infrastructure universe. Historical filings, including results for 2021, outline a business built on high-density colocation campuses, recurring revenue contracts and strong connectivity features that positioned Switch to serve enterprise and cloud customers in the United States. While new financial data are now shared privately with the current owners rather than the market, Switch’s evolution under private ownership provides additional context for listed peers in the data center sector, especially as demand for AI-ready infrastructure continues to shape capital allocation decisions across the industry.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.