AirTrunk pauses listing as AI data center IPOs falter

A run of failed or delayed listings is showing the limits of investor appetite for the AI infrastructure boom. In the past week, planned listings for a REIT backed by Blackstone ↘ 0.27% and built around AirTrunk assets, for Nvidia-backed ↗ 2.78% Firmus and for SoftBank-backed SB Energy have all been pulled or paused, Reuters reported. Over the same period, AI stocks weakened and debt issued by CoreWeave ↗ 6.28% fell toward distressed levels.reuters.com

The setbacks point to a shift in how investors judge data centre companies. Higher borrowing costs and doubts about returns are now weighing on valuations. "The conversation has shifted from growth at any cost to a much sharper focus on quality," Freshfields partner Harry Evans told Reuters.reuters.com

Firmus and AirTrunk step back

Firmus withdrew its application to list on the ASX on Friday, October 9. The listing would have raised about $5 billion and been the second-largest share sale in Australian history. The company said the available terms "would not appropriately reflect the strength of the company's business," CNBC reported. Trading had been set to begin on October 23, and the company will now seek private capital, ABC News reported. According to Reuters, Firmus struggled to persuade investors it could meet its revenue projections while carrying roughly $30 billion of debt.abc.net.au+1

AirTrunk then paused its planned Singapore REIT listing, citing market volatility and uncertainty over US interest rates, The Australian reported, drawing on The Wall Street Journal News Corp ↘ 0.03%. AirTrunk had already cut the valuation of its assets by about S$400 million to make the offer more attractive.theaustralian.com.au

SB Energy's IPO has also slipped. The company had sought a valuation of more than $50 billion, and investors questioned that figure and its heavy reliance on OpenAI as a customer, Reuters reported.reuters.com

CoreWeave under pressure

CoreWeave shares fell more than 15% on Wednesday, October 14, as fears grew that AI companies are borrowing too heavily, CNBC reported. The yield on its bonds due 2031 briefly rose above 16% on Thursday, and the cost of insuring its debt against default implied a nearly 63% chance of default within five years, according to Reuters. Its shares and bonds were on track for steep weekly losses on Friday. BCA Research analysts linked the selloff to a hot inflation reading, Reuters reported.cnbc.com+2

Rates reshape the deal market

Higher rates are central to the new caution. Benchmark 10-year US Treasury yields rose more sharply last quarter than in any quarter this century. Equity fundraising for Asian data centres has reached $5.4 billion so far this year, down 4.6% from the same period in 2025, according to Dealogic data cited by Reuters.reuters.com

Other parts of the market are holding up. M&A involving Asian data centres has reached a record $21.3 billion, and Singapore's DayOne could still list as soon as November. One banker summed up the tension: "Investors are still going in but the question is at what valuation."