The Daily Dig
Switch has secured a $2.6 billion syndicated performance letter of credit facility, the first of its kind in the data center sector. The standalone instrument sits separate from Switch's existing revolving credit and borrowing base facilities and is built specifically to back obligations tied to new transmission and generation resources.
The structure gives Switch financial credibility with utilities in power-constrained markets, allowing the company to commit to large-scale energy infrastructure with the certainty utilities need before moving. Syndicating across multiple financial institutions lowers cost while expanding total credit capacity. EVP and Head of Capital Markets Jon Edwards said the company expects to upsize the facility as growth continues.
Switch has now raised over $24 billion in financing since 2024, with investment-grade instruments on stabilized assets and over $10 billion in revolving capital commitments for new development. The company operates two gigawatt-scale campuses in Nevada and reports that power rates for Nevada residents declined year-over-year, against the trend of rising electricity costs nationwide.
BBVA and Natixis CIB structured the facility and served as initial coordinating lead arrangers and joint bookrunners. BNP Paribas, Citibank N.A., and Societe Generale acted as coordinating lead arrangers. CIBC, Rabobank, RBC, Scotiabank, and SMBC were joint lead arrangers. Standard Chartered served as mandated lead arranger, and Natixis CIB will also serve as administrative agent. Milbank LLP represented Switch; Paul Hastings represented the lenders.
Snapshot:
Company: Switch
Facility Type: Syndicated Performance Letter of Credit (LC)
Facility Size: $2.6 billion
Industry First: First standalone syndicated performance LC facility in the data center sector
Purpose: Back obligations tied to new transmission and generation resources; support gigawatt-scale campus buildouts
Structure: Standalone, separate from existing revolving credit and borrowing base facilities
Total Financing Raised Since 2024: Over $24 billion
Revolving Capital Commitments: Over $10 billion
Campus Locations: Nevada (two gigawatt-scale campuses)
Structuring Banks: BBVA, Natixis CIB
Coordinating Lead Arrangers: BNP Paribas, Citibank N.A., Societe Generale
Joint Lead Arrangers: CIBC, Rabobank, RBC, Scotiabank, SMBC
Mandated Lead Arranger: Standard Chartered
Administrative Agent: Natixis CIB
Legal Counsel (Switch): Milbank LLP
Legal Counsel (Lenders): Paul Hastings
Announcement Date: April 21, 2026
TheJobWalk Thoughts
This facility signals where capital is flowing. When an operator structures $2.6 billion specifically to backstop power commitments, large-scale campus construction follows. GCs, subs, and suppliers tracking data center work should watch Switch's Nevada footprint and any new markets they enter for scope across site work, electrical, and mechanical trades.
The power constraint problem is now being addressed at the capital markets level. That gives project timelines tied to utility readiness a better chance of holding, which affects how contractors should think about workforce planning and equipment procurement windows on future Switch projects.
