Market selloff and rising rates test AI data centre deal boom
XLK•A market selloff and higher borrowing costs are delaying or repricing fundraising plans for AI data-centre companies. Asian data-centre M&A has reached $21.3 billion this year, while equity fundraising is down 4.6% to $5.4 billion.
1. Fundraising faces greater scrutiny
A market selloff is forcing companies building AI infrastructure to delay fundraising plans or pay more for capital as investors scrutinise valuations, debt and business models. In the past week, listings for a Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy were pulled or paused, while CoreWeave’s debt slumped towards distressed prices.
2. Deal figures diverge
Asian data-centre M&A reached $21.3 billion as of Tuesday, more than double the $10 billion recorded in all of 2025. Syndicated loans and bond issuance totalled $22.3 billion so far this year, while sector equity fundraising was $5.4 billion, down 4.6% from the same period in 2025.
3. Rates and execution risks
Higher borrowing costs are sharpening questions about whether projected revenues can support growing debt burdens. Developers also face rising power and water costs, opposition over electricity use and environmental concerns, and greater difficulty securing suitable land and power supplies. Major deals are still advancing: AirTrunk is nearing a sale of its Johor data centre at a valuation of about $1 billion, and Bain Capital has received final bids for at least 40% of Bridge Data Centres in a deal that could value the business at around $5 billion.
