SoftBank Group to Incur $3.7 Billion Loss from Natural Gas Turbine Reservations

SoftBank Group has decided to relinquish a portion of the natural gas turbine capacity it had reserved for artificial intelligence-focused energy projects. The company is returning approximately 4 gigawatts of its total 13-gigawatt reservation from GE Vernova to the manufacturer, resulting in a $3.7 billion financial loss.

According to information reported by The Wall Street Journal, this move by SoftBank is being interpreted as a sign that the energy demand expected to be triggered by the artificial intelligence sector has not reached anticipated market levels. The company continues to hold 9 gigawatts of turbine capacity for the OpenAI data center being built in Pike County, Ohio, which is supported by Donald Trump.

The fact that GE Vernova's order book is full until 2031 is pushing other data center developers to seek alternative energy sources. SoftBank's inability to sell the capacity it holds suggests that demand for energy assets may be weaker than the optimistic projections within the sector.