By Daragh Thomas
Publication Date: 2026-10-09 18:20:00
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Firmus Grid Ltd. had backing from Nvidia Corp. (NASDAQ:NVDA) and computing deals with Meta Platforms Inc. (NASDAQ:META) and OpenAI. But investors balked at valuing an AI data-center developer with just $51 million in annual revenue at more than $30 billion.
The Australian company scrapped its IPO Friday after failing to attract sufficient demand. The roughly $5 billion offering would have valued Firmus at $30.6 billion, about 600 times its fiscal 2026 sales, according to Bloomberg.
The $30 Billion Bet on Unbuilt Data Centers
Firmus builds facilities packed with Nvidia chips, selling computing capacity to AI companies.
Its IPO prospectus projected $5.8 billion in earnings before interest and taxes in 2029, assuming seven data centers were operational by the end of 2028, according to The Nightly.
Of its 912-megawatt development pipeline, however, just 46 megawatts had been built, Bloomberg found. Roughly 95% of its planned capacity remained unfinished.
Minotaur Capital co-founder Armina Rosenberg estimated that 97% of contracted revenue depended on facilities that hadn’t yet been constructed.
Firmus estimated it would cost $37.7 billion to build its five remaining data centers, according to its IPO documents. The company had secured $72.8 billion in future revenue commitments, but still…
