Data centres darling pulls out of federal AI inquiry

By the Editorial Team · Thursday, October 8, 2026

Firmus Technologies plans a $44 billion IPO on the ASX but is considering lowering its share price from $11 to $9 due to weak demand, especially from retail investors. Additionally, the company’s withdrawal from a key federal AI inquiry raises questions about its stability amid industry scrutiny and recent setbacks.

Firmus Technologies, a major player in Australia’s data centre sector, is preparing for what was expected to be a historic $44 billion initial public offering (IPO) on the Australian Securities Exchange (ASX), potentially marking the second-largest float in the nation’s history. However, reports emerged on Wednesday indicating that the company’s bankers are considering reducing the IPO’s share price from the initially planned $11 per share to around $9 due to weaker-than-anticipated demand, particularly from retail investors.

The reduced enthusiasm has raised questions about the float’s overall reception, contrasting with earlier high expectations given Firmus’s profile in the technology infrastructure market. Industry insiders described demand for the shares as "very light" via some retail broker channels involved in the offering.

Compounding the company’s challenges, Firmus Technologies announced on Wednesday afternoon that it would not participate in a scheduled appearance before the federal parliament’s inquiry into artificial intelligence, originally set for Thursday at 10:30 a.m. The decision came without an official explanation, prompting speculation about the reasons behind the withdrawal. Attempts to obtain comment from Firmus were unsuccessful.

Despite its absence, Firmus is expected to remain a significant focus of the inquiry, particularly as CDC Data Centres, a competitor led by Greg Boorer, is scheduled to appear on Friday morning. CDC Data Centres previously abandoned a $73.3 billion merger deal with Firmus, an arrangement that had attracted considerable attention in the data centre sector. Observers are keen to see whether new information during the inquiry will shed light on the developments between the two companies or broader issues within the industry.

The unexpected developments have led some analysts to suggest that Firmus’s position in both the market and the inquiry may be less stable than initially perceived, with the combination of the impending IPO price revision and the decision to withdraw from the parliamentary hearing signaling potential challenges ahead for the company.

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