Data Centres

Dominant theme: securing capital and financial assurances to lock in utility power for AI-focused data centres.

Switch increased its Corporate Revolving Credit Facility to more than US$6 billion and expanded a Syndicated Uncommitted Performance Letter of Credit Facility to US$3. 5 billion—building on a prior US$2.

6 billion syndicated performance LCF and backed by banks including TD Securities, Wells Fargo, BBVA and Natixis with counsel from Milbank and Paul Hastings—directly responding to utilities and counterparties that now require financial assurance before allocating power; watch how this liquidity advances contracted development and the pace of AI and cloud deployments.

Tracking: Data Center · Data Centre

Geography: Global, United States - Northern Virginia (Ashburn), United States - Silicon Valley (Santa Clara, Santa Clara County), United States - Dallas / Irving / Plano, United States - Phoenix (Mesa, Chandler), United States - Chicago, United States - New York / New Jersey, United States - Seattle, United States - Los Angeles, United Kingdom - London (Docklands, Slough), Netherlands - Amsterdam, Germany - Frankfurt, France - Paris, Ireland - Dublin, Singapore, Japan - Tokyo, Hong Kong, Australia - Sydney, India - Mumbai / Chennai, South Korea - Seoul, Brazil - São Paulo, Mexico - Mexico City, United Arab Emirates - Dubai / Abu Dhabi, Qatar - Doha, Iceland (data center projects), South Africa - Johannesburg / Cape Town

1. Switch expands credit facilities to nearly $10bn for AI data-centre power

Switch has expanded and up-sized its credit facilities to nearly US$10 billion to underwrite energy procurement and utility relationships for AI-focused data centre campuses.

The Corporate Revolving Credit Facility was increased to more than US$6 billion and the Syndicated Uncommitted Performance Letter of Credit Facility was expanded to US$3.

5 billion, providing liquidity to advance contracted development and secure power for AI and cloud deployments.

The letter of credit facility is designed to provide performance letters of credit to utilities and counterparties that now require financial assurance before allocating power to large projects. Switch says the move builds on a prior US$2.

6 billion syndicated performance LCF, and banks including TD Securities, Wells Fargo, BBVA and Natixis participated in the transactions alongside legal counsel Milbank and Paul Hastings.

Key facts:

- Total expanded credit facilities: nearly US$10 billion

- Corporate Revolving Credit Facility increased to more than US$6 billion

- Syndicated Uncommitted Performance LCF expanded to US$3.5 billion

- LCF issues performance letters of credit to utilities and counterparties

- Move supports contracted development for AI and cloud deployments

Why it matters: As AI deployments drive higher electricity demand, utilities now seek financial assurance before allocating power; Switch's larger credit lines convert financial capacity into procurement leverage.

That benefits Switch by lowering a key hurdle to campus development and benefits utilities and counterparties by providing visibility and enforceable performance assurances.

Watch whether other developers replicate LCF structures and whether utilities tighten pre-allocation requirements, as those moves will shape project timelines, capital needs and the speed of AI and cloud buildouts.

Procurementmag