Signs of investor caution around artificial intelligence infrastructure spread across Asia-Pacific markets Tuesday. South Korean AI data center firm Elice Group saw its shares plunge roughly 30% on its market debut, a sharp decline that analysts described as part of a broader bout of AI skepticism and a sell-off touching Korean data center stocks more generally.
The reaction echoed a similar stumble in Australia, where data center operator NextDC was placed in a trading halt and another AI-linked float, referred to by commentators as a flop, had already struggled earlier this year. Analysts suggested these episodes point to investors questioning whether AI and data center companies have adequately planned for the practical and community-level challenges of building out large-scale computing infrastructure, including power demand and local approvals.
Separately, National Australia Bank said it plans to cut around 2,500 jobs by the middle of 2027, a reduction announced alongside a broader set of market-moving corporate updates in Tuesday's Australian trading session. The scale of AI-related investment, and the debate over whether it is translating into efficient business outcomes, has become a recurring theme for companies and regulators alike; Australia's Fair Work Commission, the country's workplace tribunal, has reportedly seen a rise in cases tied to AI use in workplaces.
The developments add to a broader global conversation this year about whether heavy spending on AI infrastructure, from chips to data centers, is being matched by proportionate returns, a question investors have increasingly pressed as new AI-linked companies come to market.
Watch whether other AI infrastructure listings in the region face similar pressure, and for more detail on National Australia Bank's job cuts timeline.
Is this skepticism limited to South Korea?
No, similar caution has shown up in Australia with NextDC's trading halt and an earlier troubled AI-linked listing, suggesting a regional pattern rather than an isolated case.