Market selloff, rising rates test AI data centre deal boom
QQQ•A market selloff and rising borrowing costs are prompting AI data-centre companies to delay or pull fundraising plans, while investors scrutinize valuations and debt. Asian data-centre M&A has reached $21.3 billion so far this year, while sector equity fundraising is down 4.6% to $5.4 billion.
1. Fundraising faces more scrutiny
A market selloff is forcing companies driving the AI boom to delay fundraising plans or pay more for capital as investors seek evidence they can handle rising interest rates and computing costs. In the past week, listings for Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy were pulled or paused as AI-related stocks weakened and data-centre operator CoreWeave's debt slumped towards distressed prices.
2. Asian deal activity continues
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, while syndicated loans and bond issuance total $22.3 billion. Equity fundraising for the sector stands at $5.4 billion, down 4.6% from the same period in 2025. Firmus had aimed to raise $5 billion but struggled to convince investors it could meet ambitious revenue projections while carrying about $30 billion of debt.
3. Rates and valuations in focus
Higher borrowing costs are prompting investors to test whether projected revenues can support growing debt burdens. Developers also face rising power and water costs, opposition over electricity use, noise and environmental concerns, and challenges securing land and power. Some transactions 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.
