Data centre operator AirTrunk is delaying its planned Singapore REIT IPO until next year due to market volatility. The Blackstone-backed firm faced pressure as higher interest rates cooled investor demand. Many similar companies also pushed back listings recently. AirTrunk continues to weigh its options as global economic uncertainty remains high.

Data centre operator AirTrunk is delaying a planned initial public offering of a real estate investment trust in Singapore until next year as higher interest rates and market volatility temper investor demand, according to people familiar with the matter.

The Blackstone Inc.-backed company had been planning to start formally gauging investor interest for the $1.5 billion REIT IPO at the start of October, the people said, asking not to be identified because the information is private.

A planned IPO in Australia by another data centre company, Firmus Grid Ltd., collapsed last week. The Nvidia Corp.-backed firm failed to bring in enough demand at the valuation it sought, reflecting growing investor caution about artificial intelligence infrastructure deals that hinge on future earnings.

To sweeten its deal for investors, AirTrunk had considered offering a roughly 6% yield for its REIT, up from a previously envisaged 5.5%, the people said. However, September’s interest rate rise in the US and the prospect of further increases mean investors are still cautious, they said.

REITs are rate-sensitive and therefore come under pressure when borrowing costs are high. The data center subsidiary of Philippine telecommunications firm PLDT Inc. said last week it would defer its REIT IPO to next year given rising interest rates. Singapore’s main REIT Index has tumbled 12% since late July.

AirTrunk’s deliberations over details such as the size and timing of the potential IPO are ongoing, the people said.

Dow Jones Newswires reported earlier that AirTrunk was delaying plans for the Singapore listing because of market volatility and uncertainty over US rates.

Representatives for AirTrunk didn’t respond to requests for comment. Blackstone declined to comment.

AirTrunk, which was founded in Sydney in 2015, operates data centers in Australia, Hong Kong, India, Japan, Malaysia and Singapore, according to its website. In 2024, Blackstone and Canada Pension Plan Investment Board acquired the company for A$24 billion ($16.7 billion) in what was Blackstone’s biggest-ever investment in the Asia Pacific region.