SB Energy Inc. Files for IPO Amid Significant Losses and Ambitious Projects
SB Energy Inc., a subsidiary of SoftBank Group Corp., has filed for an initial public offering, aiming to raise between $5 billion and $7 billion. Despite reporting a loss of $3.2 billion on $139 million in sales in the first half of 2026, the company has a substantial project backlog and plans to list on Nasdaq under the ticker symbol 'SBE.'
SB Energy Inc., a developer of data centers and electrical infrastructure, has officially filed for an initial public offering (IPO). The SoftBank Group Corp. subsidiary did not disclose the amount it hopes to raise, but reports suggest it may be looking to sell between $5 billion and $7 billion in shares. Sources have indicated that the company could seek a valuation exceeding $50 billion.
In the first half of 2026, SB Energy reported a loss of $3.2 billion against sales of just $139 million, with nearly all revenue stemming from energy infrastructure projects. The company operates a significant 900-megawatt solar farm in Texas that supplies power to a Google LLC data center and is also in the process of constructing two energy storage facilities in California, one of which will feature a 580-megawatt solar array.
The long-term growth strategy for SB Energy is heavily focused on its data center business, which generated minimal revenue in the first half of 2026 but boasts a massive project backlog valued at $430 billion. A flagship initiative is the development of a 10-gigawatt data center campus in Ohio for OpenAI Group PBC, known as the PORTS-Pike project. This facility will incorporate closed-loop cooling systems to reduce water usage and will be powered by a nearby $33 billion power plant, linked through $4.2 billion worth of new power transmission lines.
Nvidia Corp., a key investor in both SB Energy and OpenAI, is supporting the project with a residual value guarantee of up to $105 billion for 4.25 gigawatts of capacity at the PORTS-Pike site. Nvidia also plans to purchase $1.5 billion worth of shares at the IPO listing price, while OpenAI has received stock warrants valued at $5.5 billion.
The PORTS-Pike campus is one of three data center facilities SB Energy is constructing for OpenAI, with the other two located in Texas, expected to have a combined capacity of 1.59 gigawatts upon completion. The company's prospectus highlights its substantial dependency on OpenAI as a potential risk factor.
Additionally, SB Energy claims that its ability to develop both power and technology infrastructure provides a competitive edge, allowing for optimized electricity costs for customers. The company intends to list its shares on the Nasdaq under the ticker symbol 'SBE.'
