SoftBank's Billion-Dollar Loss Could Cap AI's Gas Power Push

At a glance

SoftBank over-ordered gas-turbine equipment for its power projects and took a big loss. The setback may slow the growth of natural gas power for AI data centers.

Key points

1. 1

   About two years ago, SoftBank paid deposits on over 13 gigawatts of turbines, about 50% more than it needed.

2. 2

   Its latest quarterly loss was $7.1 billion, and more than half came from power equipment.

3. 3

   Some of the deposits can no longer be refunded, so they are seen as largely lost.

4. 4

   Experts say data centers may lean toward grid connections and large batteries instead.

Why it matters

AI data centers need much more electricity, so large sums are flowing into natural gas power. This decision could shape how energy and AI investment develops.