A selloff in AI-related stocks is forcing data-centre companies to delay fundraising or pay more for capital. Investors want proof the sector can absorb rising interest rates and computing-power costs. Deal activity continues, but scrutiny of business models has sharpened.
A market selloff is forcing companies driving the global AI boom to delay fundraising plans or pay more for capital, Reuters reported. Investors are reassessing whether the builders of AI infrastructure can generate returns that justify soaring spending on computing power, land and energy.
Listings pulled as AI debt weakens
In the past week, listings for a Blackstone-backed AirTrunk REIT, Nvidia-backed Firmus and SoftBank-backed SB Energy were pulled or paused, while the debt of data-centre operator CoreWeave slumped towards distressed prices. Firmus had aimed to raise $5 billion but struggled to convince investors it could deliver on ambitious revenue projections while carrying about $30 billion of debt.
Analysts said the scrutiny is not derailing investment in the sector. However, it is forcing investors to distinguish more sharply between business models and levels of execution risk.
Higher rates test valuations
Higher borrowing costs sit at the heart of the shift. Benchmark 10-year US Treasury yields posted their sharpest quarterly rise this century last month, bankers said, prompting investors to check whether projected revenues can support growing debt burdens. Gary Goh, CEO of Sprint DC Consulting, warned that higher financing costs could lead to sharp valuation corrections.
Asian data-centre M&A reached $21.3 billion as of Tuesday, according to Dealogic data, more than double the $10 billion recorded in all of 2025. Debt financing totals $22.3 billion so far this year, but equity fundraising for the sector is down 4.6% at $5.4 billion.
Investors rotate toward safety
Meanwhile, MarketWatch reported that the selloff in AI-linked shares is driving investors toward safety, with a rotation into defensive stocks. It added that Treasury yields were slumping across the curve early Thursday as bonds headed for their biggest one-day rally in at least a year.
Large deals are still moving ahead. DayOne is expected to go public as soon as November, seeking to raise up to $5 billion, Reuters reported in September. John Dinsdale, chief analyst at TechInsights, said the question for investors is less whether demand will expand than which business models will best capture that growth sustainably.
Sources: Reuters via Investing.com, MarketWatch (snippet-based)
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