The Stocks That Most Fear a Data-Center Freeze

Dow Jones
Yesterday

Another sector falling prey to Thursday's market blood-letting: neoclouds.

These are companies that typically use high levels of debt to buy chips from Nvidia and other suppliers, install them in data centers and lease them out to customers looking for AI computing power.

The handful of publicly-traded neoclouds have proven highly sensitive to interest rate movements and data center construction delays. That's because they rely on future contracted revenue from big customers to pay down their hefty loans. Any hint that data center development might slow is poison for neocloud stocks, because it casts doubt on their ability to make debt payments on time. Enter a crop of newly elected officials vowing a moratorium on construction of new data centers.

-- CoreWeave, the largest and most-indebted of the public companies in the sector, lost another 12% on Thursday, halving its market value in the past month. If the trend holds until the closing bell, its shares will have fallen five of the past six trading days. CoreWeave went public in March of last year, and is down 77% from its all-time closing high in June of 2025.

-- Nebius, the next biggest publicly-traded neocloud, fell 16% on Thursday, and has lost 49% in the last month.

-- Iren, an Australian neocloud, also fell 16%, although it has fared better over the medium-term, losing only about 20% of its value since the start of October.

-- Singapore-based Bitdeer fell nearly 20% on Thursday and more than 50% over the past month.

 

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