AirTrunk has reportedly paused its plans for a public listing in Singapore, citing ongoing market volatility and uncertainty surrounding U.S. interest rates, according to reports. The Sydney-based data centre developer’s decision comes just a week after Firmus called off its ambitions for a $44 billion initial public offering (IPO) on the Australian Securities Exchange (ASX).
Acquired by private equity giant Blackstone for $24 billion in 2024, AirTrunk had begun engaging select investors earlier in the year to explore a potential Singapore listing, though no definitive timeline was established. The company had planned to structure the offering similar to a real estate investment trust, incorporating key assets such as a prominent data centre located in Melbourne’s western suburbs. However, investor concerns over the proposed structure and fund terms, compounded by the broader macroeconomic environment, appear to have contributed to the pause.
AirTrunk, recognized as a leading data centre platform in the Asia-Pacific region, has experienced rapid growth both within Australia and across Asian markets. Founder and CEO Robin Khuda recently announced intentions to substantially expand AirTrunk’s presence in Japan, with planned investments potentially reaching as much as $30 billion to address surging demand for artificial intelligence (AI) infrastructure. Khuda highlighted the company’s nine-year operational history in Japan, including four campuses and a workforce of 120 full-time employees.
In addition, AirTrunk revealed a $30 billion investment initiative in June aimed at advancing India’s digital transformation, a move that earned commendation from Prime Minister Narendra Modi. Modi emphasized that AirTrunk’s commitment would help position India as a global hub for cloud computing and AI technologies.
Despite the robust demand for AI-related infrastructure, potential investors are displaying greater caution and demanding higher returns amid volatile markets. Firmus, another major data centre developer, cited these challenging conditions when it abandoned its $44 billion IPO last week, which would have been Australia’s largest offering in three decades. Firmus stated that current market conditions would not allow the offering to properly reflect the company’s business fundamentals and growth prospects. While the company’s co-founder Oliver Curtis attributed the decision to an unfriendly market environment for entrepreneurs, some observers contend that the failure stemmed from unrealistic pricing expectations.
Other technology and data centre firms are similarly reconsidering public listings. Vitro REIT, a data centre operator backed by Philippine telecom giant PLDT, has postponed its planned IPO until 2027, referencing market instability and rising interest rates. Wearable technology company Oura, which has increasingly integrated AI capabilities into its products, also delayed its Nasdaq float amid the uncertain environment.
Together, these developments underscore the broader challenges facing tech and infrastructure companies seeking to enter public markets amid heightened investor scrutiny and economic uncertainty.