SoftBank’s SB Energy AI infrastructure unit files to go public

SB Energy Inc., a developer of data centers and electrical infrastructure, today filed for an initial public offering.

The SoftBank Group Corp. unit didn’t specify how much it’s hoping to raise. Over the weekend, the Wall Street Journal reported that SB Energy is looking to sell between $5 billion and $7 billion in shares. Sources earlier told Reuters that it could seek a valuation in excess of $50 billion.

SB Energy lost $3.2 billion on just $139 million in sales during the first half of the year. According to the company’s prospectus, practically all its revenue came from energy infrastructure projects. SB Energy operates a 900-megawatt solar farm in Texas that supplies power to a Google LLC data center. It’s also building two energy storage facilities in California, one of which will include a 580-megawatt solar array.

The company’s long-term growth strategy revolves around its data center business. It generated practically no revenue in the first half 2026, but has a massive $430 billion project backlog.

SB Energy’s flagship project is a 10-gigawatt data center campus that it’s building in Ohio for OpenAI Group PBC. The PORTS-Pike development, as it’s called, will feature closed-loop cooling systems designed to minimize water use. SB Energy and OpenAI plan to meet the campus’ energy requirements by building a power plant nearby for $33 billion. They will link the plant to the site using $4.2 billion worth of new power transmission lines.

Nvidia Corp., a major investor in both companies, is backstopping the project. According to the IPO filing, it will provide a “residual value guarantee” worth up to $105 billion for 4.25 gigawatts of capacity at PORTS-Pike. The chipmaker has the option to backstop another 3.78 gigawatts later on. If it doesn’t, OpenAI will be obliged to secure a different guarantor.

SB Energy’s financial partnership with Nvidia also extends to other areas. According to the IPO prospectus, the chip giant has committed to buying $1.5 billion worth of shares at the listing price. OpenAI, for its part, has received stock warrants worth $5.5 billion.

PORTS-Pike is one of three data center campuses that SB Energy is building for the ChatGPT developer. The other two, which are located in Texas, will have a combined capacity of 1.59 gigawatts when they become fully operationally. SB Energy’s prospectus flags the fact that it’s “substantially dependent on OpenAI” as a potential risk.

Another section of the document argues that the SoftBank unit’s ability to developer both power and technology infrastructure is a competitive differentiator. According to the company, its vertically integrated approach makes it easier to optimize customers’ electricity costs.

SB Energy plans to list its shares on the Nasdaq under the ticker symbol “SBE.”

Image: SB Energy