Las Vegas data-center owner Switch is expanding its big presence in Southern Nevada with a new kind of facility: so-called AI factories.

Switch is developing a project at the southwest corner of the Jones Boulevard-215 Beltway interchange in the southwest Las Vegas Valley, near its existing cluster of data centers. Plans for the new site have called for a roughly 199,000-square-foot data-center warehouse and another such facility that spans around 228,000 square feet, Clark County records show.

Construction is underway.

Jason Hoffman, chief strategy officer at Switch, told the Las Vegas Review-Journal that the company is building AI factories.

He said these facilities are smaller than Switch’s typical data centers in Las Vegas but are more densely packed with computing power.

A typical data center is filled with servers and other gear needed to store clients’ data. By comparison, an AI factory is designed to power artificial-intelligence systems, Hoffman confirmed.

These are Switch’s first AI factories in Las Vegas, he said, adding the company is building others around the country.

Switch, founded by CEO Rob Roy, operates data centers in Nevada, Texas, Michigan and Georgia. In 2022, the company was acquired by two investment firms in a deal valued at about $11 billion.

Hoffman said the AI factories are being driven by system designs from Silicon Valley tech giant Nvidia.

Led by billionaire Jensen Huang, Nvidia makes chips and software for AI and is earning mountains of money amid the rapidly spreading use of artificial-intelligence technologies.

Nvidia booked almost $72.9 billion in profit in its most recent fiscal year, up from about $4.4 billion two years earlier, according to a securities filing.

The company said in a blog post in March that AI factories do more than store and process data, as they “manufacture intelligence at scale.”

“They orchestrate the entire AI lifecycle — from data ingestion to training, fine-tuning and, most critically, high-volume inference,” it said.

Among its projects, Nvidia announced plans in May for new AI factories in Saudi Arabia, saying the venture would “transform the country into a global powerhouse” for artificial intelligence and other tech.

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