Market Selloff and Rising Rates Test AI Data Centre Deal Boom
Market volatility and rising interest rates are forcing AI data centre companies to delay fundraising or accept higher capital costs, with several planned IPOs shelved.
Newsnibs Staff
- 2026-10-16
- Updated 2:18 PM UTC
A market selloff and rising interest rates are pushing companies in the global AI data centre sector to delay fundraising or pay more for capital, according to a Reuters analysis. Investors are demanding proof that firms can absorb higher rates and rising computing-power costs before committing money.
Several planned listings have been pulled or paused in recent weeks. Blackstone-backed AirTrunk's REIT listing was shelved, as was Nvidia-backed Firmus's planned $5 billion IPO, which carried roughly $30 billion in debt. Holtec's US listing was also pulled.
Benchmark 10-year US Treasury yields posted their sharpest quarterly rise this century in September, prompting scrutiny over whether data centre operators' projected revenues can support their growing debt loads.
Deal activity in the sector overall remains robust. Debt financing totaled $22.3 billion, while equity capital market fundraising dropped 4.6% to $5.4 billion. M&A in Asian data centres reached $21.3 billion this year, more than double the $10 billion recorded in 2025.
Singapore-based DayOne is expected to go public in November, seeking up to $5 billion. AirTrunk is nearing a $1 billion sale of its Johor data centre to investors including KWAP. Bain Capital is receiving bids for at least 40% of its Bridge Data Centres platform, in a deal that could value the platform at $5 billion.
Harry Evans, a partner at law firm Freshfields, said the conversation among investors has shifted away from "growth at any cost" toward "quality." Analysts note investors are increasingly differentiating between established wholesale operators with long-term commitments and higher-risk "neoclouds" and AI-campus builders.
Photo by İsmail Enes Ayhan on Unsplash
