Nvidia Adds $1.5 Billion Investment in SB Energy, Total Commitment Rises to $3 Billion

en.Wedoany.com Reported - On September 21, SB Energy's latest regulatory filings showed that Nvidia will make an additional $1.5 billion equity investment in the company ahead of its U.S. initial public offering, bringing its total investment commitment to SB Energy to $3 billion. The new investment uses a prepaid forward agreement structure, with Nvidia having prepaid $1.5 billion and subsequently to acquire non-voting Class N common stock at 90% of SB Energy's IPO offering price. Meanwhile, Nvidia had previously committed to subscribing for an additional $1.5 billion of Class N common stock at the IPO offering price through a concurrent private placement upon completion of the IPO.

SB Energy has applied to list on the Nasdaq Global Select Market and Nasdaq Texas under the proposed ticker symbol "SBE." The final IPO size and price range have not yet been determined. The company's previous filings with Japanese regulators showed that it plans to sell up to $500 million of shares to Japanese investors in the U.S. IPO, with the proceeds to be used for data centers, power facilities, energy storage, and supporting infrastructure construction.

SB Energy's existing contracted data center portfolio comprises approximately 8.8 GW of IT load, of which approximately 0.8 GW is under construction, while the other 8 GW represents contracted but not yet constructed capacity at the PORTS-Pike Technology Campus. The 0.8 GW under construction includes the Cosmos Technology Campus and Milam County Buildings 1 and 2 in Texas; the PORTS-Pike project is located in Ohio and is leased by an OpenAI-affiliated company. SB Energy disclosed in its IPO filing that no data center capacity is currently in commercial operation.

The PORTS-Pike Technology Campus is planned to build at least 10 GW of new energy facilities, corresponding to approximately 8 GW of AI data center IT capacity, with phased commissioning planned from 2028 onward. SB Energy and SoftBank also plan to invest at least $4.2 billion in the local area through cooperation with AEP Ohio to build and upgrade regional transmission infrastructure. Nvidia had previously provided SB Energy with a $1.5 billion investment around this project and assumed related residual value guarantee arrangements for the leases.

SB Energy's data center business is currently supported primarily by two types of anchor customers, SoftBank and OpenAI, with SoftBank leasing capacity at the Cosmos project and OpenAI-affiliated companies corresponding to the Milam County and PORTS-Pike projects. The company also operates power generation and energy storage businesses, with its business model covering long-term data center leasing, power sales, and the design, engineering, construction management, and operations management of data centers, power, and energy storage facilities.

In addition to contracted projects, SB Energy has submitted approximately 51.2 GW of data center load interconnection applications in the United States since 2023. The company has also recently advanced data center projects with approximately 1.7 GW of IT capacity in Borden County and Scurry County, Texas, both of which have secured land and grid connection conditions and are progressing development and lease negotiations.