Observed Signal · Feb 19, 2026 · Investment · Source: TechCrunch · Impact: 3/5 · Sentiment: Neutral
SoftBank's $33B Gamble on Massive U.S. Gas Plant
SoftBank’s subsidiary SB Energy plans to build a 9.2 gigawatt natural gas-fired power plant on the Ohio–Kentucky border, a project Bloomberg reports could cost about $33 billion. If completed, the plant would be the largest in the U.S., with capacity to power roughly 7.5 million homes. It is unclear who will ultimately fund the project; historically new generating capacity costs are often borne by ratepayers. SB Energy is a partner with OpenAI on the Stargate project, and SoftBank and OpenAI are building a proof-of-concept data center at the former GM Lordstown plant, but SB Energy has not stated whether the new plant would feed the grid or power data centers directly. The build would likely take years and faces equipment shortages; estimated direct CO2 emissions are around 15 million metric tons per year, with additional climate risk from methane leaks in the natural gas supply chain.
Large-scale $33B energy infrastructure project could affect power availability for data centers, carbon emissions, and who bears costs (ratepayers). The scale and OpenAI linkage make it relevant to cloud/AI infrastructure planning but it is not an immediate platform policy or technical change.
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Key Takeaways & Evidence Grounding
- SoftBank subsidiary SB Energy plans a 9.2 gigawatt natural gas-fired power plant on the Ohio–Kentucky border.
- Estimated project cost is about $33 billion.
- If completed, the plant would be the largest power plant in the U.S., capable of powering around 7.5 million homes.
- Projected direct emissions could be around 15 million metric tons of CO2 per year; methane leaks could increase climate impact.
- SB Energy is a partner with OpenAI in the Stargate project; OpenAI and SoftBank are building a proof-of-concept data center at GM’s former Lordstown assembly plant.
Connected Companies & Entities
5 Entities mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
SB Energy files for IPO, substantially dependent on OpenAI
SB Energy, an AI power infrastructure company backed by Softbank, OpenAI, and Nvidia, has filed for an IPO with the U.S. SEC. The company plans to list on Nasdaq under ticker SBE and is seeking to raise between $5 billion and $7 billion. It has not yet generated revenue from its data center business, with none operational, and incurred net losses of approximately $3.2 billion in the first half of 2026. Nvidia has committed $105 billion in financing for an OpenAI data center in Ohio to be built by SB Energy. The filing highlights significant dependence on OpenAI as both a tenant and equity investor, along with risks including community backlash against data centers.
OpenAI Joins PORTS-Pike AI Data Center Project
OpenAI has secured roughly 8 gigawatts‑IT of capacity at the PORTS‑Pike Technology Campus in Pike County, Ohio, on DOE‑controlled and private land, in a partnership with SB Energy (SoftBank‑backed), NVIDIA and the U.S. Department of Energy. SB Energy will build, own and operate the data center under a 20‑year lease; SB Energy and SoftBank plan power sources supporting up to 10 GW and commit at least $4.2 billion to regional grid infrastructure, while some reports describe a proposed 9.2 GW natural‑gas plant costing about $33 billion. NVIDIA is investing $1.5 billion in SB Energy, will supply compute for an initial 4.25 GW (with an option to expand toward 8 GW), and is providing credit and compute support (reports have cited larger credit commitments). The phased six‑year buildout is expected to create about 35,000 construction jobs and 2,500 long‑term roles; first 800 MW expected in 2028. OpenAI will fund a $40 million community grant fund and provide up to $84 million in Codex credits for eligible Ohio students.
Big Tech Builds Natural-Gas Plants for AI
Major technology companies are investing in on-site natural gas power plants to secure large volumes of electricity for growing AI compute demand. Microsoft is partnering with Chevron and Engine No. 1 on a West Texas plant that could scale to 5 GW; Google is working with Crusoe on a 933 MW plant in North Texas; Meta added seven natural-gas plants at its Hyperion site in Louisiana, bringing that campus to 7.46 GW. Analysts warn of a turbine shortage and steep equipment-price inflation — Wood Mackenzie projects turbine prices could rise ~195% versus 2019 and notes multi-year delivery lead times with new orders constrained until 2028 and ~6-year delivery windows — creating supply-chain risks. Because natural gas fuels about 40% of U.S. electricity (EIA), these behind-the-meter builds could affect regional gas markets, electricity prices, other gas-dependent industries, and resilience during weather-driven supply shocks.
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