- Nebius Group (NASDAQ: NBIS) signed a multi-year agreement to supply Microsoft with dedicated AI infrastructure capacity from its new Vineland, New Jersey data center starting later this year.
- CEO Arkady Volozh said the contract is the first of several expected long-term deals with major AI labs and tech companies, adding that it strengthens Nebius’s core AI cloud business.
- The company will finance related capital expenditures through cash flow from the deal and debt secured against the contract, while exploring additional financing options to accelerate growth.
Nebius has signed a five-year agreement with Microsoft worth up to $17.4 billion to provide dedicated GPU computing capacity from a new data center in Vineland, N.J.
The contract, disclosed in an SEC filing, calls for the Amsterdam-based AI infrastructure compan to deploy the GPU infrastructure in stages through 2025 and 2026. The baseline value of the deal is about $17.4 billion through 2031, with options that could lift the total by another $2 billion.
Founder and Chief Executive Arkady Volozh said the agreement marks the first of several long-term contracts Nebius expects to secure with major AI labs and technology companies.
“I’m happy to announce the first of these contracts, and I believe there are more to come, Volozh noted in a statement. “The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond.”
Nebius indicated it plans to finance the heavy capital spending tied to the project with cash flow from the contract as well as debt backed by Microsoft’s credit quality, and is weighing additional financing options to expand faster than originally planned.
Nebius,listed on Nasdaq, builds full-stack infrastructure to power the global AI industry, with R&D hubs across Europe, North America, and Israel. Its AI-native cloud platform combines proprietary hardware and software to deliver compute, storage, and tools tailored for intensive AI workloads. Beyond its core business, Nebius operates Avride in autonomous driving, TripleTen in edtech, and holds equity stakes in ClickHouse and Toloka.
