Switch Signs Anchor Tenant at The Keep Campus in Atlanta and Breaks Ground on Next Two Buildings

Rhea-AI Summary

Switch (NYSE: SWCH) announced a new anchor tenant at its Keep Campus in Atlanta, boosting its client deployment to 72% at the ATLANTA 1 data center. This deployment is set to generate over $6 million in annualized revenue. The company held a virtual groundbreaking for its second and third data center buildings, expected to add 50 MW and 35 MW of capacity respectively by 2023. The Keep Campus will span over 1.3 million square feet, with total investments reaching $2.5 billion in Georgia, focusing on 100% renewable energy.

Positive

• The anchor tenant's deployment contributes over $6 million in annualized revenue.
• 72% commitment for client deployments at ATLANTA 1 data center.
• Construction of second and third buildings reflecting strong demand.
• Total investment in the Keep Campus expected to reach $2.5 billion.

Negative

• None.

ATLANTA, Nov. 17, 2020 /PRNewswire/ -- Switch (NYSE: SWCH), the exascale technology infrastructure corporation, today announced the signing of a global logistics company as the anchor tenant at Switch's Keep Campus in Atlanta. Following this signing, the first data center at this campus, "ATLANTA 1" is 72% committed for client deployments – including space currently under contract in addition to future expansion options. Given this signing and the ongoing strong demand at the Keep Campus, Switch CEO, Founder and Chairman Rob Roy commenced a "virtual" groundbreaking for the construction of the second and third data center buildings at the campus.

Initially planned for this past April, Switch's formal grand opening at the Keep Campus was put on hold due to COVID-19 protocols. However, fueled by robust client demand Switch held the virtual event to celebrate the successful opening and accelerated expansion in Atlanta.

The anchor tenant's deployment will utilize the majority of the second sector at the ATLANTA 1 facility, contributing contractual annualized revenue of over $6 million, excluding expansion options and usage-based charges for power and telecommunications.

"The demand for enterprise class exascale infrastructure in the Southeastern U.S. technology market validates our strategic decision to locate our newest PRIME campus in Atlanta," said Switch CEO, Founder and Chairman Rob Roy. "Accelerating development reflects the strong customer need for our differentiated Tier 5^® Platinum product offering."

When the second building comes online in 2022, it will add 50 megawatts (MW) of new capacity, with the next building expected to open the following year, adding another 35 MW of capacity.

"Until we announced our entrance into the market, a Tier 5^®, 100 percent renewably powered data center product did not exist in the Southeast," said Switch EVP of Strategy Adam Kramer. "By locating in the tax competitive environment like Georgia, Switch is clearly growing technology infrastructure capability in the region."

At full build-out, the Keep Campus footprint will span more than 1.3 million square feet, with an expected overall investment of $2.5 billion in Georgia including Switch's owned infrastructure in addition to customer expenditures on hardware and other computing resources. The Keep Campus is the fourth Switch PRIME campus in the United States. Switch's other PRIME campus locations are in Las Vegas and Tahoe Reno, Nevada and Grand Rapids, Michigan.

As part of its long-standing commitment to be a leader in sustainability, Switch is also working with Georgia Power to ensure the Keep Campus uses 100 percent green energy from new, local and renewable energy resources. 

About Switch
Switch, Inc. (NYSE: SWCH), is the independent global leader in exascale data center ecosystems, edge data center designs, industry-leading telecommunications solutions and next-generation technology innovation. Switch Founder and CEO Rob Roy has developed more than 500 issued and pending patent claims covering data center designs that have manifested into the company's world-renowned data centers and technology solutions.

We innovate to sustainably progress the digital foundation of the connected world with a focus on enterprise-class and emerging hybrid cloud solutions. The Switch PRIMES, located in Las Vegas and Tahoe Reno, Nevada; Grand Rapids, Michigan; and Atlanta, Georgia are the world's most powerful exascale data center campus ecosystems with low latency to major U.S. markets. Visit switch.com for more information or follow us on LinkedIn and Twitter.

This press release contains forward-looking statements within the meaning of federal securities laws. Forward-looking statements in this press release include, but are not limited to, statements regarding future demand and development. The forward-looking statements in this press release are based on information available to Switch as of the date hereof, and Switch disclaims any obligation to update any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. For additional information regarding forward-looking statements, please refer to Switch's Annual Report on Form 10-K for the year ended December 31, 2019 (including information under the caption "Risk Factors") and other reports filed with the SEC. Switch's SEC filings are available on the Investors section of Switch's website at https://investors.switch.com and on the SEC's website at www.sec.gov.

 

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SOURCE Switch

FAQ

What is the recent announcement by Switch (SWCH) regarding its Atlanta campus?

Switch has signed a global logistics company as an anchor tenant at its Keep Campus in Atlanta, leading to increased client deployment.

How much annual revenue will the new anchor tenant at Switch's ATLANTA 1 data center generate?

The new anchor tenant is expected to generate over $6 million in annualized revenue.

What is the capacity increase planned for Switch's Keep Campus?

The second building will add 50 MW and the third building will add 35 MW of capacity.

What is the total investment Switch is making in the Keep Campus in Atlanta?

Switch's total investment in the Keep Campus is expected to reach $2.5 billion.

When is Switch expected to open its new data center buildings?

The second building is expected to come online in 2022, with the next building following in 2023.