Nebius Secures $4 Billion to Fuel AI Infrastructure Expansion

The race to build artificial intelligence infrastructure is intensifying, and Nebius is accelerating its data center construction with a massive new capital raise. The AI infrastructure provider is tapping into strong institutional investor demand to fund an ambitious expansion, driven by substantial commitments from major technology firms including Meta and Microsoft.

Robust Investor Demand Exceeds Initial Target

In a clear sign of market confidence, Nebius increased the size of its convertible bond offering due to significant oversubscription. The company initially sought to raise $3.75 billion but ultimately placed securities worth a full $4 billion. After accounting for issuance costs, net proceeds are expected to reach approximately $3.96 billion. These funds are earmarked for the direct procurement of state-of-the-art graphics processing units and the ongoing development of its proprietary AI cloud platform.

Long-Term Contracts Underpin Financial Strategy

Such a capital-intensive growth plan carries substantial risk, which Nebius has mitigated by securing long-term agreements with anchor tenants. The financial foundation for its expansion is supported by massive, pre-committed capacity deals. Meta Platforms recently expanded its agreement to a potential value of up to $27 billion. Separately, Microsoft has secured cloud capacity valued between $17 billion and $19.4 billion. These contracted revenue streams provide crucial stability for funding the build-out.

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A Core Facility in Missouri Anchors Growth

A central component of the company’s strategy is a massive AI data center complex under development in Missouri. This facility, described as an “AI factory,” is projected to achieve a capacity of 1.2 gigawatts and is scheduled to come online in the second half of 2026. A key partnership with Nvidia facilitates this project; the chipmaker not only invested $2 billion directly but also grants Nebius early access to its latest hardware generations. Looking further ahead, Nebius is targeting a total operational capacity of five gigawatts by 2030.

Market Recognition and Financial Performance

The aggressive expansion strategy is receiving a positive reception from equity investors. Over the past twelve months, Nebius shares have surged more than 350 percent, with the stock currently trading around $117. Despite the company not yet being profitable, this is offset by annual revenue growth exceeding 350 percent in its core business. Analysts see further upside, issuing an average price target of $166. Experts at Citi are even more bullish, setting their target at $169 per share.