Wall Street is growing skeptical of the data center boom, and several companies tied to the industry have delayed or paused planned initial public offerings. SB Energy delayed its IPO amid investor pushback on a sought valuation above $50 billion, and Holtec paused its IPO indefinitely citing uncertainty around data center demand. Investors are questioning aggressive revenue forecasts such as SB Energy’s projection of a $439 billion revenue backlog beginning in 2028 tied mostly to an Ohio data center. Public backlash over data centers’ water and power use has shaped local politics and policy, including California forcing AI data centers to disclose their water and power consumption. The pause in flotations comes as U.S. data center construction spending runs about 60 percent higher year over year at a roughly $75 billion annualized pace, raising doubts about whether future build-out will find affordable capital. If investor caution persists, companies may have to scale back expansion plans and seek alternative financing while municipalities and states weigh tighter disclosure and permitting rules.
