Cramer Likes The Data Center Industry But Isn't A Buyer Of Switch

But are investors wrong? Perhaps, at least according to CNBC's Jim Cramer.

The data center segment is a "pretty lucrative business" to be in, especially those with a large proportion of recurring revenue, Cramer said during his daily "Mad Money" show on Monday. Specifically, 95 percent of Switch's revenue is recurring and implies the company operates its data centers as a service. This creates a predictable revenue stream that investors can appreciate, especially for a company that is already profitable. Finally, the stock also appears expensive despite Monday's sell-off and doesn't boast the same dividend payouts that other data centers which are structured as REITs offer investors. Related Links: Lightning Round: Jim Cramer Weighs In On Monster Beverage, General Electric And More

Also, Switch's most notable clients include eCommerce powerhouses like Amazon.com, Inc. AMZN and eBay Inc EBAY, Cramer said. These companies likely require Switch's patented cooling systems and powerful machines that are required to handle complex and sensitive data.

But taking a deeper look at the "intriguing" company does reveal some "issues" that need to be addressed before buying the stock, Cramer continued. For example, the company's founder, Rob Roy, controls 67.7 percent of the total voting power and public shareholders own less than 5 percent. In addition, 38 percent of total sales come from just 10 companies, one of the biggest of which is eBay who accounts for almost 10 percent.

"I do love the data center, and I like Switch the company even with the convoluted ownership structure," Cramer concluded. "In the end, though, the stock is simply a little too rich for me right now to recommend. That said, call me a believer in the concept. Just not the price."