Nvidia-backed AI data centre firm scraps landmark listing over market fears

Firmus has pulled the plug on plans for what would have been one of Australia’s biggest stock market debuts, after deciding the deal no longer stacked up in the current market. The AI data centre company said recent volatility and “prevailing market conditions” meant a public listing would not be in the company’s or shareholders’ best interests.

That is a sharp turn for a business that had been aiming for a valuation above $30bn. One investment firm told the BBC it passed on the IPO because of worries about the price tag. UniSuper, one of Australia’s biggest pension funds, also stayed out. Its chief investment officer, John Pearce, said the company had “a compelling story” but not “a compelling valuation”.

Firmus builds and runs liquid-cooled data centres — the company calls them “AI factories” — for clients including OpenAI and Meta. It operates in Australia, Singapore and other parts of Asia-Pacific, and counts Nvidia, Blackstone and Jane Street among its backers. Blackstone declined to comment, while Nvidia and Jane Street were contacted by the BBC.

The retreat comes as the AI funding boom is facing more scrutiny. Investors and analysts have been asking how long the billions flowing into the sector can keep rising when the long-term returns are still unclear. Pearce also said UniSuper worried Firmus might need to take on more debt to finance growth. Firmus said it will now look for capital in private markets and may explore other public and private options later. Australia, meanwhile, still wants more data centre business, even as some locals worry about the noise and environmental impact.