EQT broke off talks about a potential investment in data center company Yondr several weeks ago, said sources familiar with the matter.

The reasons the investor walked away could not be confirmed.

Several interested parties remain in the auction, sources said. Yondr and its advisor, Citi, collected second-round bids at the end of June.

Private equity firms TPG and Bain Capital as well as AI business G42 were reportedly involved in sale talks.

EQT, Citi and Yondr declined to comment. The data center company’s owner, family office Cathexis, did not respond to requests for comment.

The excitement around AI – a recent driver of data-center buildout – has cooled off this summer as many are beginning to question if the technology will be able to generate revenues that warrant vast sums of capex.

Investors, too, have become more trepidatious about data center processes, whether it’s a sale or a capital raise, because of the sheer number of opportunities. They have also called into question the wisdom behind some buildout projections and the magnitude of capital needed, industry executives have said.

One executive satirically pointed out that while the utility industry and regulators have failed to supply the market with enough power, this dynamic has actually instilled discipline in the market.

In terms of revenue, the data center industry is projected to grow from USD 416bn in 2024 to USD 624bn by 2029, according to data analytics company Statista. The industry is projected to account for 2.9% of global electricity demand by 2028 compared to 0.8% in 2018, according to a TD Cowen report from May.

Meanwhile, EQT is conducting a sale process of its own: a minority stake sale in global data center provider EdgeConneX. That process is also in its final stages, as executives are holding talks with institutional investors.