Data center companies delay IPOs amid growing public opposition - NYT

Data center companies are postponing their initial public offerings (IPOs) due to growing public opposition against energy-intensive facilities, according to a report from The New York Times. SB Energy, a subsidiary of Japanese conglomerate SoftBank, has delayed its IPO slated for this month. The company aimed to build the world’s largest data center in Ohio and sought a valuation of $50 billion or more. However, bankers have struggled to find enough buyers at the price range the company and its advisers set.

Holtec, a company specializing in nuclear energy for artificial intelligence (AI) operations, announced it is pausing its IPO indefinitely. The decision comes as Holtec is uncertain about data center development and seeks to avoid the challenges facing the sector. Holtec operates one nuclear power site and manufactures small reactors for data center use, planning to list on NASDAQ with an aim to raise up to $900 million at a $10 billion valuation.

Aggreko, a power company catering to AI data centers, has also adjusted its IPO timeline. Three sources familiar with the situation reported to The New York Times that while Aggreko may still go public in the coming month, it has slowed the process due to data center-related challenges, rising interest rates, and increased economic uncertainty.

Aggreko serves AI data centers, live events, and mining projects but has emphasized data center clients as a major revenue driver over the past year. Public opposition to data centers has risen as communities resist these large, energy-hungry facilities, especially in rural areas.