Market selloff, rising rates test AI data centre deal boom
BX•A market selloff and higher borrowing costs are prompting AI data-centre companies to delay or pause fundraising and face tougher valuation scrutiny. Asian data-centre mergers and acquisitions have reached $21.3 billion so far this year, while sector equity fundraising is down 4.6% to $5.4 billion.
1. Fundraising faces scrutiny
Listings for Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy have been pulled or paused as investors reassess valuations, debt and business models. Firmus had aimed to raise $5 billion but struggled to persuade investors it could meet revenue projections while carrying about $30 billion of debt; Holtec also pulled its US listing last month, citing uncertainty around data-centre demand.
2. Rates and execution risks
Higher borrowing costs are sharpening questions about whether projected revenues can support rising debt burdens. Data-centre developers also face higher power and water costs, opposition over electricity use, noise and environmental concerns, and challenges securing suitable land and power supplies. Asian data-centre M&A has reached $21.3 billion so far this year, compared with $10 billion in all of 2025; debt financing totals $22.3 billion, while equity fundraising is $5.4 billion, down 4.6% from the same period in 2025.
3. Deals still advancing
DayOne is expected to go public as soon as November and is seeking to raise up to $5 billion. AirTrunk is nearing a sale of its Johor data centre to investors including KWAP at a valuation of about $2 billion, while Bain Capital has received final bids for at least 40% of Bridge Data Centres in a deal that could value the platform at around $5 billion.
