A selloff in artificial-intelligence stocks and higher borrowing costs are starting to change how investors finance the data centers behind the boom. Companies are delaying fundraising or paying more for capital as backers demand clearer evidence that future revenue can cover the cost of chips, land, electricity and debt, Reuters reported.
In one week, planned listings involving Blackstone-backed AirTrunk, Nvidia-backed Firmus and SoftBank-backed SB Energy were pulled or paused. Freshfields partner Harry Evans told Reuters that the conversation had shifted from “growth at any cost” to a sharper focus on quality.
Capital is still flowing, but the terms are changing
The setbacks do not amount to an investment freeze. Data-center mergers and acquisitions in Asia reached $21.3 billion through October 13, more than double the $10 billion recorded in all of 2025, according to Dealogic data cited by Reuters. Syndicated loans and bond issuance totaled $22.3 billion this year.
Equity fundraising was weaker. The sector had raised $5.4 billion through public markets, down 4.6% from the same period in 2025. Firmus had sought $5 billion in what would have been Australia’s second-largest stock listing, but Reuters said the company struggled to persuade investors that it could meet ambitious revenue projections while carrying about $30 billion of debt.
Higher interest rates make those projections harder to defend. The benchmark 10-year U.S. Treasury yield posted its sharpest quarterly increase this century in September, prompting investors to look more closely at whether expected revenue can support growing debt burdens. Developers also face higher power and water costs, limited land and electricity supplies, and opposition to some projects over noise and environmental concerns.
Bond prices show where investors see risk
The pressure is visible in debt markets. The Financial Times reported that bonds financing several large U.S. data centers had fallen below their issue prices. CoreWeave’s bonds dropped below 75 cents on the dollar, pushing yields to nearly 16% on October 14. Bonds tied to projects leased by Meta, Nvidia and Microsoft also traded below par.
Those prices signal that investors want more compensation for perceived risk; they do not establish that a borrower will default. The FT also reported that CoreWeave shares had fallen nearly 25% over the week, rival Nebius had lost more than 20% and Nvidia had shed more than $300 billion in market value.
The unease has reached the broader stock market. NBC News reported that the S&P 500 closed October 15 about 1% below its record from the prior week, while the Nasdaq was more than 3% below its recent peak. That matters beyond technology shares because AI-related investment has become a major contributor to U.S. growth.
