Nvidia-backed Nebius expands AI infra after Microsoft, Meta deals

Nebius, a Netherlands-based data center operator, is expanding its AI infrastructure business in Europe and the US after securing multi-billion-dollar contracts with Microsoft and Meta.

The company offers access to Nvidia GPUs and specialized AI software and plans to secure 2.5 gigawatts of contracted power for its facilities across both regions by the end of 2026.

Nebius reported that its top market by revenue and installed capacity is the US, while it also operates data centers in Britain, Iceland, Finland, and France.

A US$17 billion deal with Microsoft and a US$3 billion agreement with Meta helped push Nebius’ market capitalization past US$25 billion in 2025.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Nebius’s Microsoft deal leaves payment terms unclear

The company called it a deal worth several billion dollars and left out the contract length, minimum payments, and cancellation rules 1. Without those, the 2.5 gigawatts (GW) target could be firm bookings or just planned capacity that buyers may not use.
It raised about US$4.2 billion through equity and convertible debt (debt that can convert into equity) 2. The company plans to fund build costs with cash from this deal plus new loans secured by the contract 1. This setup assumes steady cash inflows, yet with no disclosed take-or-pay terms (clauses requiring payment regardless of actual usage) investors lack a clear view on debt service.

Vendors can win near-term sales from Nebius’s fast 2.5 GW buildout

Construction is underway on a 300 megawatts (MW) site in Vineland, New Jersey, with phase one due in summer 2025 3. Nebius has secured expansion capacity to exceed 400 MW at the location 4. The company aims to reach 2.5 GW of contracted power by the end of 2026 across the US and Europe.
The Vineland site covers 2.6 million square feet with six 220,000-square-foot server buildings 3. That footprint drives demand for liquid cooling systems (circulating fluid to dissipate server heat). Vendors also see orders for backup power gear and fiber backhaul (high-capacity network links to the internet backbone). Local permitting expertise will matter as Nebius races to hit its 2026 capacity goal.