It is on track to be the second-largest IPO on record behind Telstra\u2019s $14bn share sale in 1997, and one of the top five in the world this year.<\/p>\n
Its massive 104-megawatt datacentre at St Leonards, worth an estimated $2.1bn, was given fast-tracked approval by the city of Launceston in September last year without a public hearing.<\/p>\n
Thompson was furious. She joined a protest group that believes Tasmanians were kept in the dark by the company.<\/p>\n
\u201cTheir consultation was nonexistent until they had it shoved in their face that they made a mistake,\u201d says Thompson. \u201cBy then, it was too late.<\/p>\n
\u201cThe more we researched this company, the less appropriate it seemed that size of facility should be voted on by a local council with limited community awareness.\u201d<\/p>\n
In June, Firmus realised it had a problem. Community backlash was threatening two other proposed datacentres in the state\u2019s north-east<\/a>. With an IPO months away, it organised dozens of public consultation sessions with a pre-prepared message.<\/p>\n The $2.1bn Firmus AI datacentre being built at St Leonards in Launceston. Photograph: Sarah Rhodes\/The Guardian<\/p>\n \u201cThey did a bit of a mea culpa and said we handled that badly and we should have done something more,\u201d says Joe Zadravec, who lives close to another proposed Firmus datacentre.<\/p>\n \u201cBut they only did that after they were caught.\u201d<\/p>\n A Firmus spokesperson confirms the company overhauled its community engagement program after receiving strong feedback from Launceston locals.<\/p>\n \u201cThe feedback we receive will continue to help shape our approach,\u201d they say.<\/p>\n Soaring valuation<\/p>\n As Firmus prepares to ask prospective shareholders for billions of dollars in the heat of a global AI boom, its Tasmanian missteps offer an unfiltered look at the operational risks behind the pitch.<\/p>\n A year ago, as local councillors approved the five-hectare AI factory in Launceston, Firmus was worth just under $2bn in a private funding round.<\/p>\n As plans emerged to build liquid-cooled datacentres across the Asia-Pacific alongside AI chip maker Nvidia, which acts as both an investor and hardware supplier, that valuation surged.<\/p>\n In less than 12 months, the implied valuation leaped from $2bn toward a targeted $40bn-plus ASX debut. Now, investment analysts are dangling figures as high as $100bn<\/a>, a price tag that would make Firmus twice the size of Telstra.<\/p>\n Sign up for the Breaking News Australia email<\/a><\/p>\n One investment manager who viewed the company\u2019s draft prospectus tells Guardian Australia the valuation \u201ckeeps randomly compounding when nothing has really changed\u201d.<\/p>\n \u201cI\u2019m not saying it\u2019s not worth anything, it\u2019s just not worth the valuation they\u2019re trying to get it away at,\u201d the investment manager says.<\/p>\n The majority of its ambitious pipeline is unbuilt, with the company now operating just two facilities, one in Melbourne and the other in Singapore.<\/p>\n The draft prospectus shows Firmus is forecasting $5bn in annual earnings once its development pipeline progresses, which would put it in the top tier of ASX earners.<\/p>\n \u201cThis is a capital-hungry business that needs to keep raising debt and\/or equity to fund the losses, and meanwhile we\u2019re being told this will have $5bn of earnings within a few years \u2013 it\u2019s a little bit of a fairytale,\u201d the investment manager says.<\/p>\n A Firmus spokesperson declined to comment when asked series of questions by Guardian Australia regarding the feasibility of its earnings forecast and valuation.<\/p>\n The Firmus IPO is a pitch to investors that they can own a stake in the future, with echoes of the speculative allure of Elon Musk\u2019s SpaceX.<\/p>\n Goodman Group has withdrawn plans for a datacentre near a school in Lane Cove, Sydney, amid local opposition. Photograph: Hollie Adams\/Reuters<\/p>\n But while Firmus relies on the prompt construction of datacentres to justify its valuation, the US, which is further along in the AI datacentre boom, offers a sobering look at the obstacles ahead.<\/p>\n A comparable datacentre offering was recently delayed in the US after bankers struggled to find buyers willing to support a sought-after valuation of US$50bn or more, the New York Times reports<\/a>.<\/p>\n Part of the problem is that datacentres are hitting community resistance, with US cities Tulsa, New Orleans and Birmingham among those implementing temporary bans on permits and construction.<\/p>\n skip past newsletter promotion<\/a>Free newsletter |When needed<\/p>\n Sign up to Breaking News Australia<\/p>\n Get the most important news as it breaks<\/p>\n after newsletter promotion<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/1790971452_695_2998.jpg\")
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