Japanese investor SoftBank reported $3.7 billion hit to its earnings on Tuesday, after cancelling a glut of orders for gas-producing equipment to power the AI hardware buildout that it couldn’t use. The news intensified fears that the AI frenzy that saw hyperscalers take on huge amounts of debt to build the infrastructure needed to power data centres could be losing steam. Nvidia founder Jensen Huang’s resignation has also made investors nervous that the world’s largest chipmaker could back away from its strategy of bankrolling AI hardware under a new leader. “I think the fear is that the music might stop,” a fund manager told Reuters.
The AI buildout is still making winners, however. Siemens Energy expects to triple its dividend in 2027 as the US data center boom boosts demand for its gas turbines and grid equipment. “Some of the growth rates for data centers were unrealistic, it’s just that nobody wanted to hear it,” said its CEO. Gas turbine customers are facing multiyear waiting times, with developers increasingly hunting for second-hand equipment. Chinese gas-turbine manufacturers hope to capitalize on high demand.
— Chloé Farand
