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SB Energy's expansion to AI infrastructure underscores how critical power has become in the AI boom.

The big picture: Energy companies are adapting to grab more tech value.

Driving the news: OpenAI announced plans on Monday to lease computing from the 10 GW data center in Ohio that will be built, owned and operated by SoftBank-backed SB Energy.

Nvidia will backstop up to $104 billion, which will help SB Energy raise debt financing. Nvidia also is investing $1.5 billion into SB Energy itself.

Context: SB Energy's earlier focus was building utility-scale solar and storage farms that were becoming attractive to hyperscalers.

SB Energy indicated last year it also was interested in developing the data center projects themselves.

OpenAI and Softbank each invested $500 million in January to support its role as a development partner for data center campuses after collaborating on Stargate.

In March, SB Energy revealed it had acquired Studio 151, a data center construction services company that had developed 20 campuses.

Zoom in: Instead of just selling electrons, SB Energy is monetizing the scarcity of having assembled an AI-ready gigawatt in the right place at the right time.

Interconnection rights, permitted sites and power-generation capabilities have appreciated in value.

And SB Energy now can capture value from multiple layers, including data center development margin and long-term infrastructure lease income.

What's next: SB Energy is edging closer to its planned IPO, which could come as early as September and raise between $5 billion and $7 billion.

A wave of other AI infrastructure developers are on tap to go public, including Switch, Vantage, CyrusOne, and DayOne.

Meanwhile, other energy developers are repositioning, including Invenergy, which has partnered with Nvidia and Emerald AI on AI factories.

The bottom line: Power has become more constrained and more valued, and energy developers are moving up the value chain.

SB Energy's AI transition signals new value for power players

It's monetizing the scarcity value of an AI-ready gigawatt in the right place at the right time.

Illustration of interconnected gears bearing lightning bolt motifs.

SB Energy&#x27;s expansion to AI infrastructure underscores how critical power has become in the AI boom.The big picture: Energy companies are adapting to grab more tech value.

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SB Energy's AI transition signals new value for power players

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