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

Firmus, an Nvidia-backed data centre operator, has cancelled plans for what would have been one of Australia's largest initial public offerings, citing market volatility and concerns over valuation.

The company had targeted a listing that valued it at over $30bn. The decision follows feedback from major institutional investors, including UniSuper, one of Australia's largest pension funds, which declined to participate over pricing concerns.

John Pearce, UniSuper's chief investment officer, told the BBC that while Firmus has "a compelling story, it just doesn't have a compelling valuation." Pearce added that UniSuper also worried the company would need to increase debt to fund its expansion plans.

An unnamed investment firm told the BBC it withdrew from the IPO over valuation concerns as well.

Firmus operates liquid-cooled data centres, which it calls "AI factories," serving clients including OpenAI and Meta across Australia, Singapore and other Asia-Pacific regions. Blackstone and Jane Street have backed the firm alongside Nvidia.

The scrapped listing reflects broader investor caution about the artificial intelligence sector. Hundreds of billions of dollars have flowed into AI infrastructure as long-term return prospects remain unclear. In September, OpenAI CEO Sam Altman said his company would not seek a listing this year, citing safety concerns and describing the timing as "ill-advised." Anthropic and OpenAI have separately eyed future debuts potentially valued above $1tn each.

On Thursday, stocks of AI-related companies Nvidia and Oracle fell in US trading after reports that OpenAI's revenues were lower than previously anticipated.

Firmus said it will now pursue capital from private markets and explore alternative public and private options.

Australia has emerged as an attractive data centre destination due to abundant clean energy, natural gas and available land. The country currently hosts over 160 data centres with additional projects planned, though some Australians have raised environmental and noise concerns about the facilities.