Key facts
- Nebius said prepayments and asset-backed financing of investment-grade contracts should cover up to 85% of its $40 billion to $45 billion 2027 capex.
- Only just over half of the Microsoft capacity at Vineland is planned for delivery by the end of 2026, with the rest in the second quarter of 2027.
- Nebius said DataOne wound down temporary generation faster than expected as the site switches to Bloom Energy fuel cells.
- Nebius said its Microsoft contract lets Microsoft terminate affected service after a grace period if dates are missed and no alternative capacity is offered.
- Nebius ended the quarter with $7.4 billion in cash, and CFO Maria Del Dado Alonso Sanchez named Microsoft and Meta as financeable contracts.
- CEO Arkady Volozh said on the call that building at this scale is hard and delays are part of the industry.
Nebius said on its third-quarter earnings call on November 12, 2026, that it plans $40 billion to $45 billion of capital spending in 2027, above what Wall Street had expected, according to TechCrunch. The company said prepayments and asset-backed financing of investment-grade contracts should cover up to 85% of that spend. CFO Maria Del Dado Alonso Sanchez named Microsoft and Meta as contracts that can be financed this way.
The plan rests on third-party sites. Nebius's largest customer, Microsoft, is paying for AI computing capacity at a Vineland, New Jersey data center that is months behind schedule. The Microsoft contract is worth up to $19.4 billion. Only just over half of the Microsoft capacity is now planned for delivery by the end of 2026, with the rest coming in the second quarter of 2027, beyond the 2025 and 2026 tranches originally planned.
Andrey Korolenko, Nebius's chief product and infrastructure officer, said DataOne, the third-party operator of the site, decided to wind down temporary generation faster than expected as the site switches to Bloom Energy fuel cells. In August, the investigative site Floodlight identified at least 45 natural gas generators operating at the DataOne site without permits, and New Jersey regulators fined the facility $1.1 million, finding the use violated federal law, per the report. DataOne also faces a noise-complaint lawsuit from nearby residents.
Nebius said Microsoft has been part of the planning process but did not say whether Microsoft agreed to the new dates; Microsoft has not publicly canceled anything. Nebius's summary of the contract says Microsoft can terminate affected service after a grace period if dates are missed and no alternative capacity is offered, and the contract includes financial penalties for late delivery.
Bloomberg reported that Microsoft is tightening oversight on projects run by third parties, including Nebius, IREN and Nscale, and debating whether to sign new agreements. Microsoft noted in its own quarterly report that capital spending was lower than expected due to third-party delays.
Nebius reported third-quarter revenue of $981 million, up 571% from a year earlier, roughly a third of which was a one-time payment tied to a new partnership model. It cut its 2026 revenue forecast by $200 million to $3 billion, citing delays at third-party sites, and forecast 2027 revenue of $12 billion to $13 billion with pre-tax breakeven by the fourth quarter. Nebius ended the quarter with $7.4 billion in cash. Shares ended the session down 17%.