One signal

Data-centre operator Firmus Grid is seeking a A$43.7bn valuation for an Australian IPO this month, Bloomberg reports, citing the Australian Financial Review.

Why it matters

The reported figure is about US$30.3bn. The Financial Review’s account, as described by Bloomberg, is based on pricing sent to potential investors, not a completed listing or confirmed final valuation. Data centres are the physical foundation of modern computing, making the proposed valuation a useful signal of investor appetite for the infrastructure behind it. A big number, certainly; the prospect of a finished IPO is another matter.

Discuss: Should investors value data-centre operators mainly on expected demand for computing capacity, or on the infrastructure and power they can actually deliver?

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