Nebius plans up to $45 billion in 2027 capex as some New Jersey capacity slips

AI cloud provider Nebius said on November 12 that it expects to spend $40 billion to $45 billion on capital projects in 2027. It kept its goal of bringing more than one gigawatt of new capacity online each year. The company expects customer prepayments and asset-backed financing tied to existing contracts with investment-grade customers to cover 75% to 85% of next year’s spending.

For customers, delivery still depends on the site. Nebius expects to hand over more than half of the capacity Microsoft contracted for in Vineland, New Jersey, by the end of 2026. It now schedules the remainder for the second quarter of 2027. Delays at some third-party sites also led the company to narrow its 2026 revenue outlook to $3 billion to $3.2 billion on its earnings call. The previous range was $3 billion to $3.4 billion.

Customer commitments help finance the buildout

Prepayments give Nebius cash before customers begin using the computing capacity they have contracted for. Nebius expects $17 billion to $20 billion in customer prepayments next year. Management said on the earnings call that the amount depends on how it divides capacity among different types of contracts, since those agreements vary in length, price and how much the customer pays upfront.

Nebius spent $7.3 billion to buy property, equipment and intangible assets in the September quarter, compared with about $956 million a year earlier. Over the same period, revenue rose to $980.8 million from $146.1 million. The company said about $325 million of that revenue was a one-time contribution from the initial stage of an infrastructure partnership in which the partner funds the capacity.

The group reported a $37.5 million net loss from continuing operations. It also reported adjusted net income of $90.9 million. The quarterly reconciliation adjusts for items including share-based compensation, changes in investment values and foreign exchange.

New Jersey’s remaining capacity is due in the second quarter

In September 2025, Nebius announced an agreement to supply Microsoft with dedicated GPU capacity in stages from a new data center in Vineland. In the latest results, Nebius attributed the schedule change to a transition from temporary to permanent power. Its partner began retiring some temporary generation late in the third quarter. Nebius said initial fuel-cell generation was already online as it worked to increase the power available on the site.

Nebius identifies Bloom Energy fuel cells as the power source in its public description of the Vineland project. Power generation and delivery of computing capacity follow separate schedules. The shareholder letter says Nebius had already handed over additional New Jersey capacity during the third quarter and through November. The new second-quarter target applies to the remaining deliveries.

Nebius expects sites it owns to make up most of the capacity it brings online from 2027. The delayed third-party capacity remains under contract, the company said. Its overall expansion target gives a sense of scale, while the delivery date and region determine when an individual customer can put its reserved equipment to work.

Spot GPU prices vary by model and region

Alongside long-term contracts, Nebius offers on-demand access and reserve auctions for defined blocks of capacity. The company made its spot prices public in October. The price page shows rates by GPU and region for virtual machines that can be interrupted. These are intended for workloads such as experiments and queued jobs that can stop and restart.

Customers can set a maximum hourly price for spot capacity. Nebius says the machine stops if the market price rises above that limit. Customers can also follow the live price, with capacity still subject to interruption. The spot price applies to the specific GPU and region on the page, while a long-term contract can set aside capacity at a particular site for future delivery.

Nebius’s initial forecast puts 2027 revenue at $12 billion to $13 billion and targets pretax break-even by year-end. The company previously expected the revenue run rate, which annualizes a single month, to reach $7 billion to $9 billion in December. It now expects to exceed the bottom of that range in February 2027.