SoftBank-backed SB Energy aims to raise $500 million from Japan for U.S. IPO

SB Energy, a data center firm backed by SoftBank Group, is aiming to raise as much as $500 million in the Japanese portion of its planned initial public offering (IPO) in the U.S., following other major deals tapping the country’s deep pools of capital.

The company will start taking investor orders as soon as this month, according to a local regulatory filing Tuesday. The proceeds will be used for developing and constructing infrastructure including data centers and power plants. SB Energy, whose strategic investors include OpenAI and Nvidia, filed for an IPO in the U.S. this month.

Mizuho Financial Group, Daiwa Securities Group, PayPay Securities, Rakuten Securities and SBI Holdings will act as the selling agents for Mizuho’s U.S. arm, according to the filing. Mizuho is among parties arranging the SB Energy listing.

The plan looks to tap into Japan’s household financial assets of about $15 trillion, similar to the blockbuster SpaceX IPO in June. The rocket, satellite and AI company raised $2.2 billion in the country, one of a few around the world where retail investors were able to directly participate.

Local offerings as part of large global deals are rare opportunities in a country where sizable offerings have become relatively rare. Only one Japanese IPO has raised at least $500 million this year: the $607 million listing of taxi operator Go in June.

The offering is a chance for Japanese investors to buy into the unprecedented spending on AI infrastructure. It’s expected to generate a global economic impact of $20 trillion by 2030, according to an IDC estimate cited in the filing. In energy in particular, analysts at UBS Group expect $511 billion to be spent by 2030 to close the gap in power demand, largely driven by data centers.

SB Energy combines data centers, solar power and battery energy storage, with 8.8 gigawatts of data center capacity contracted or under construction across its campuses in Texas and Ohio, according to a filing with the U.S. Securities and Exchange Commission. It also has power projects contracted, under construction or operating that will deliver 5.5 gigawatts of usable power.

The company has issued 3.99 million warrants to OpenAI, some of which have already vested, and the remaining 2.25 million expire in 2036, the filing shows. Nvidia has agreed to buy $1.5 billion in nonvoting shares in a private placement at the equivalent of the IPO price.