GE Vernova shares fall as SoftBank revises U.S. data center equipment plans

Highlights

GE Vernova shares fell over 6% after SoftBank revised power generation equipment procurement strategies for its U.S. data center projects, including Ohio.
SoftBank will book a $3.7 billion charge in Q2 due to procurement changes but asserts that Ohio's 10GW AI server project remains on track despite contract revisions.
Investor concerns about delayed AI infrastructure spending and tighter regulatory scrutiny are pressuring power stocks, casting uncertainty over future turbine demand for GE Vernova.

Ohio project contract revision hits sentiment

As reported by Reuters, GE Vernova shares slide more than 6% on Tuesday after SoftBank revises certain power generation equipment procurement strategies for its U.S. data center projects, including the Ohio project.

GE Vernova is among the companies involved in the development of SoftBank's large gas-fired power plant and data center in Pike County, Ohio, analysts say. The 10-gigawatt AI server warehouse, backed by 9.2 gigawatts of new natural gas generation, would rank among the world's largest if completed.

J.P. Morgan analysts say the procurement changes lead SoftBank to book a $3.7 billion charge in the second quarter. They add that the Ohio project remains on track, although the contract is being revised.

SoftBank rejects claims made last week by Elon Musk in a post on X that it is defaulting on turbine orders. The company says that is untrue and adds there is no discussion about reducing the size of the Ohio project.

A GE Vernova spokesperson says on Tuesday that, while the company cannot comment on individual customer relationships, there is no negative or positive impact on GE Vernova from SoftBank's recent announcements.

AI infrastructure concerns weigh on power stocks

J.P. Morgan says the development is negative because it marks a major data center developer rethinking its plans for power equipment. The bank adds that even if turbine deliveries are delayed, GE Vernova is still highly likely to use those slots for other customers.

GE Vernova shares surge in 2026 on booming power demand, supported by growth from data centers, manufacturing and electrification. That trend has fueled investor optimism about the need for new generation capacity and grid infrastructure.

The selloff also comes as skepticism rises over returns in the AI industry. Expectations of tighter regulatory scrutiny and delays to building data centers increase after the Democratic Party's sweeping success in the U.S. midterm elections.

Abhishek Rai, an analyst at CrispIdea, says the exact impact on GE Vernova's orders is not yet clear, but investors are concerned that slower AI infrastructure spending could hurt future turbine demand.

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