SB Energy Delays IPO Amid Investor Concerns Over Valuation and Operational Risks

SB Energy, the data center and power infrastructure developer under SoftBank, has announced a delay in its initial public offering (IPO) due to investor skepticism about its valuation and operational readiness. The company had filed its S-1 registration statement with the SEC on September 1, 2026, aiming for a Nasdaq listing under the ticker SBE, with plans to raise between $5 billion and $7 billion at a valuation of approximately $50 billion.

The hesitation stems from SB Energy's reported backlog of around $439 billion, primarily linked to data center leases associated with OpenAI. Despite having contracted 8.8 gigawatts of data center capacity across Texas and Ohio, none of these facilities are operational yet. The company anticipates converting roughly 10% of its backlog into revenue over the next six years.

In the first half of 2026, SB Energy reported $139 million in revenue, all from its legacy renewables business, while incurring net losses of $3.21 billion. The company has also flagged over $170 billion in projected capital expenditures, warning of potential construction risks, permitting challenges, community opposition, and financing dependencies that could hinder its plans.

Additionally, Nvidia has made a significant investment in SB Energy, committing $1.5 billion through a private placement, bringing its total equity stake to $3 billion. This investment underscores Nvidia's strategic interest in the energy and data center sector, particularly as it relates to AI infrastructure.

SB Energy is also targeting up to $500 million from Japanese investors as part of its IPO structure, although the recent delay has cast uncertainty over the anticipated pricing timeline initially set for the week of September 21, 2026.