Nebius told investors on its third‑quarter earnings call that it expects to spend between $40 billion and $45 billion on new data‑center capacity in 2027. The figure is far higher than analysts had predicted. To fund the build‑out, the company will lean on large pre‑payments from customers such as Microsoft and Meta, and on loans that are secured by the future value of its facilities.
The plan is already under pressure. Microsoft’s contract for AI‑computing power at Nebius’s Vineland, New Jersey site – worth up to $19.4 billion – is delayed. Only a little more than half of the promised capacity is slated for delivery by the end of 2026; the remainder will not arrive until the second quarter of 2027, well past the original 2025‑2026 schedule. The delay stems from the third‑party operator DataOne winding down temporary gas generators faster than expected and switching to Bloom Energy fuel cells, a move that triggered a $1.1 million fine for operating unpermitted generators.
How Nebius plans to cover the cost
Nebius says the pre‑payments and asset‑backed financing will cover up to 85 % of the 2027 capex, with the rest coming from cash and additional borrowing if needed. The company ended Q3 with $7.4 billion in cash and reported revenue of $981 million, a 571 % jump from a year earlier, boosted by a one‑time payment tied to a new partnership model.
Chief revenue officer Marc Boroditsky highlighted that deals with Microsoft and Meta already include significant upfront payments, which should fund much of the new capacity. CFO Maria Del Dado Alonso Sanchez added that those contracts are “investment‑grade,” meaning they qualify for the asset‑backed loans the firm is using.
Background on the neocloud market
Nebius is part of the growing “neocloud” sector – large‑scale data‑center operators that sell capacity to AI developers and other high‑performance workloads. Industry analysts note that many neocloud players depend on third‑party construction partners, a model that can create timing risks when sites face regulatory or technical setbacks. Recent Bloomberg reports say Microsoft is tightening oversight of such projects, pulling back on agreements that miss deadlines.
Why it matters
For businesses that rely on Nebius’s cloud capacity, the delays could push back AI‑training projects and increase costs if Microsoft enforces penalties. Investors should watch whether Nebius can keep its financing plan on track, as a shortfall could force the company to seek more expensive debt or cut back on expansion.
