SoftBank’s billion-dollar loss may have put a cap on AI’s natural gas ambitions

SoftBank aggressively ordered over 13 gigawatts of natural gas turbines—about 50% more than needed—to secure power for AI data centers, betting it could corner the market amid surging AI electricity demand. However, the company announced a $7.1 billion quarterly loss, with over half stemming from nonrefundable deposits on power-generating equipment it now considers largely worthless. This costly over-ordering reflects the electricity mania in the AI world, where natural gas was seen as a reliable power source despite grid connection delays. Experts suggest data centers may increasingly rely on grid connections supplemented by large batteries rather than solely on natural gas, potentially slowing the gas market's growth. While SoftBank's losses are unlikely to trigger mass cancellations of gas plants, they may signal a ceiling for AI's natural gas ambitions.

(Source：TechCrunch)