Asia-Pacific’s fast-moving data center sector hit several setbacks this week, with two high-profile IPOs pulled and multiple governments pressing pause on development.
Firmus withdraws record-setting IPO
Australian neocloud company Firmus withdrew its application for what would have been a roughly AU$7.1 billion (US$4.97 billion) listing on the ASX, a deal that had been expected to be the largest Australian IPO since Telstra’s 1997 debut. Firmus, backed by shareholders including Blackstone, Jane Street, and Nvidia, said it will instead pursue up to $3 billion through private fund-raising.
The company had struggled to attract investor support even after cutting its target share price. The fallout hit Maas Group, a Firmus shareholder with a 3.2% stake and AU$727 million (US$507 million) in outstanding contracts with the company, whose stock was halted after falling 27% over two days. Days earlier, CDC Data Centers had dropped Firmus from a joint AI infrastructure project in Australia, reportedly over concerns about Firmus’ Southeast Asian expansion plans, which fell outside the original partnership.
PLDT pushes REIT listing to 2027
Philippine telco PLDT delayed the IPO of its data center REIT, Vitro, until 2027, citing current market conditions and rising interest rates. The listing had been expected to raise as much as 24.2 billion Philippine pesos (US$385.1 million) on the Manila exchange. PLDT said the IPO remains part of its asset monetization and deleveraging strategy, even as the Philippine central bank has hiked rates and is expected to raise them further this year.
Governments slow the rollout
Regulatory friction is also building across the region. Indonesia’s West Java province halted a 640MW project from Singapore-based BDX, citing missing approvals including an environmental assessment. Thailand suspended 166 data center projects, 49 of them under construction and 117 awaiting approval, so government committees can draft new industry standards.
In Malaysia, a hub of the region’s data center growth, officials at the Malaysian Energy Commission have flagged concerns over electricity demand, which has jumped from annual growth of 1.5 to 2 percent to nearly 10 percent due to data centers. Officials also noted difficulty recovering energy costs from operators on short-term contracts who have resisted longer-term commitments.
Together, the developments suggest investors and regulators are applying more scrutiny to a buildout that has, until now, moved at a rapid pace.