Wall Street skepticism grows over data center IPO prospects

David Gura: David Gura is an anchor and correspondent at Bloomberg News who hosts the Big Take podcast on business and economic stories. His reporting emphasizes policy, markets, and macroeconomic impacts. He participated in recent discussions with Maureen Farrell on growing caution among investors and bankers regarding data center projects for AI. Eena Ruffini: Eena Ruffini is an Emmy-winning journalist and host with experience at networks including CBS and Bloomberg, covering news, foreign affairs, and current events. She frequently moderates discussions on timely topics in media and business. She is one of the interviewers in recent conversations highlighting Wall Street skepticism toward AI data center IPOs. Maureen Farrell: Maureen Farrell is a finance reporter at The New York Times focused on business, markets, and deal activity. She has covered developments in the IPO pipeline and investor sentiment around emerging sectors. In a recent interview, she discussed how bankers' expectations for data center-related IPOs tied to AI have quickly shifted amid mounting challenges. IPO Market: Several companies developing data centers or supplying power for AI infrastructure have delayed or paused planned public offerings amid investor pushback. Sector Backlash: Public opposition to energy-intensive data centers is extending from local communities into broader financial market perceptions of the AI buildout. Investor Sentiment: Bankers report that expectations for data center builders and related power providers to drive a significant share of upcoming IPOs have diminished rapidly due to concerns over valuations and execution.