Market selloff, rising rates test AI data centre deal boom
QQQ•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 M&A has reached $21.3 billion this year, while sector equity fundraising is down 4.6% to $5.4 billion.
1. Fundraising faces tougher scrutiny
A market selloff is forcing companies building AI infrastructure to delay fundraising plans or pay more for capital as investors weigh whether projected returns can justify spending on computing power, land and energy. Listings for a Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy were pulled or paused in the past week, while Firmus had aimed to raise $5 billion and carried about $30 billion of debt.
2. Rates and valuations
Higher borrowing costs are prompting investors to scrutinize whether projected revenues can support growing debt burdens. Asian data-centre M&A has reached $21.3 billion so far this year, more than double the $10 billion recorded in all of 2025, and debt financing has totalled $22.3 billion; equity fundraising is down 4.6% year over year to $5.4 billion.
3. Deals continue to advance
Despite listing setbacks, DayOne is expected to go public as soon as November and seek up to $5 billion. AirTrunk is nearing a sale of its Johor data centre at a valuation of about $1 billion, while 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.
