Nebius Plans $40 Billion in 2027 Spending Amid Microsoft Contract Delays
· Technology · TechCrunch
Nebius announced $40 billion in planned spending for 2027 during its third-quarter earnings call, far exceeding Wall Street expectations. The neocloud company intends to fund this buildout through customer pre-payments and loans backed by contracts, including a $19.4 billion deal with Microsoft for AI computing capacity at a Vineland, New Jersey data center. The Vineland site is months behind schedule, with only just over half of planned capacity expected by year-end and the remainder slated for Q2 2027. DataOne, the third-party operator, faces regulatory fines and legal action over unpermitted gas generators and noise complaints, raising concerns about project timelines and financing risks.
Why it matters
Nebius's financing strategy depends on timely project delivery to avoid piling costs while revenues lag, directly impacting its ability to meet obligations to major customers like Microsoft and potentially affecting India's access to affordable AI computing infrastructure.
Read the original report — TechCrunch
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