Switch Taps $2.6 Billion of Bank Cash for Data Center Push

Switch Inc. gathered $2.6 billion of bank pledges to help the data-center operator procure electricity, a mounting challenge for the booming industry and one of its biggest costs.

Data-center operators have to pay utilities large sums even before new campuses can tap into the grid, just so they can keep their place in line for electricity. Multiple banks have committed to make good on Switch’s obligations to electricity providers if Switch can’t make the payments, according to people familiar with the matter.