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

Australian AI data centre firm Firmus has cancelled its plans for a landmark stock market listing, citing "recent market volatility and prevailing market conditions" as the reason. The company valued itself at over $30bn (£22.65bn) before deciding that going public would not be in its best interests or those of its shareholders.

Firmus, which builds and operates liquid-cooled data centres for clients such as OpenAI and Meta, will now seek funding through the private markets and explore alternative public and private options. The company's backers, including Nvidia and investment firms Blackstone and Jane Street, have not commented on the decision. UniSuper, a major Australian pension fund, was among the institutional investors who opted not to participate in the IPO, expressing concerns over Firmus' valuation and the need to take on more debt to fund growth plans.

The decision highlights the ongoing concerns within the AI sector regarding long-term returns on the billions of dollars invested in the technology. Australia's data centre industry has attracted significant investment due to its abundant clean energy, natural gas supplies, and land availability, with over 160 data centres currently operating and more planned.

However, the announcement also comes as AI-related stocks, including Nvidia and Oracle, experienced declines in US trading following reports of lower-than-expected revenues at OpenAI.