Nebius will initially present Microsoft entry to devoted GPU infrastructure capability at its new knowledge heart in Vineland, New Jersey, from later this yr
In sum – what to know:
Microsoft secures Nebius capability – The contract covers AI infrastructure from Nebius’s new Vineland, New Jersey knowledge heart, with companies set to begin later in 2025.
Multi-billion, multi-year deal – Nebius referred to as this its first long-term contract with a significant tech firm, positioning it as a basis for added agreements.
Financing growth plans – The corporate will use money movement and debt backed by the contract, with additional funding choices below analysis to speed up AI cloud progress in 2026.
Dutch knowledge heart firm Nebius has entered right into a multi-year, multi-billion greenback settlement with Microsoft to supply devoted AI infrastructure capability from its new knowledge heart in Vineland, New Jersey, the previous mentioned in a launch.
The deal has been signed for a five-year time period and is price $17.4 billion over the interval, though additional companies and capability might carry the deal as much as $19.4 billion.
Below the phrases of the deal, Nebius will initially present Microsoft entry to devoted GPU infrastructure capability at its new knowledge heart in Vineland, New Jersey, from later this yr. The information heart was initially introduced in March, with a 300 MW preliminary capability and potential to develop by one other 400 MW.
Nebius mentioned the settlement is the primary of a number of long-term partnerships it’s pursuing with massive know-how corporations and AI labs.
Nebius founder and CEO Arkady Volozh mentioned: “Along with our core enterprise, we count on to safe vital long-term dedicated contracts with main AI labs and massive tech corporations. I’m completely satisfied to announce the primary of those contracts, and I consider there are extra to return. The economics of the deal are enticing in their very own proper, however, considerably, the deal will even assist us to speed up the expansion of our AI cloud enterprise even additional in 2026 and past.”
The corporate additionally mentioned it plans to finance the required capital expenditure via a mixture of money movement generated from the deal and debt backed by the contract. Further financing choices are below evaluation as Nebius appears to speed up growth of its AI cloud operations past its authentic plans.
Nebius, headquartered in Amsterdam and listed on Nasdaq, operates analysis and growth hubs throughout Europe, North America and Israel.
