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SB Energy slows IPO plans as $4.9 billion debt package draws weak demand
The SoftBank-backed developer has also faced financing stress, with yields around 10% on a $4.9 billion debt package tied to its planned listing.
SB Energy, the SoftBank-backed power developer building large-scale data center capacity in Ohio, has slowed preparations for an IPO discussed around a $50 billion valuation, according to a September 22 Financial Times report cited by Yahoo Finance.
The financing picture has also deteriorated, with a $4.9 billion debt package facing weak demand and yields of about 10%, turning the planned listing into a stress test for how the AI buildout will be funded.
Nvidia has already invested $1.5 billion and committed another $1.5 billion linked to the IPO, and it is the exclusive AI-compute provider for SB Energy’s PORTS-Pike campus for OpenAI. The article also notes Nvidia provides credit support for an initial 4.25 gigawatts of AI capacity, with an option covering another 3.75 gigawatts.
The guarantee structure creates additional risk, with Nvidia disclosing maximum exposure that can reach $105 billion under defined conditions, tying its economics to the developer’s ability to meet lease obligations. American Electric Power is positioned on the power and transmission side through AEP Ohio’s regional power partnership, including contracted load additions through 2030 that are heavily tied to data centers.