Nebius is planning a major expansion of its AI computing capacity, with projected 2027 capital spending of $40 billion to $45 billion. The company expects customer prepayments and financing backed by contracts to cover much of that bill, while delays at a third-party data center show how timing can affect the plan.
Financing depends on contracts and delivery
Nebius said prepayments and asset-backed financing tied to investment-grade contracts could cover up to 85% of its planned 2027 spending. Chief revenue officer Marc Boroditsky said Microsoft and Meta deals included significant prepayments, received before the related computing capacity was delivered.
The approach links construction funding to customer commitments and the future value of data centers. It can help pay for a large buildout, but delayed capacity can leave a provider paying project costs while revenue arrives later. CEO Arkady Volozh acknowledged that construction at this scale is difficult and delays are part of the industry.
Nebius ended the quarter with $7.4 billion in cash. Chief financial officer Maria Del Dado Alonso Sanchez identified Microsoft and Meta contracts as financing sources, and Boroditsky said prepayments could help meet additional cash needs.
A New Jersey site is behind schedule
Microsoft is paying for AI computing capacity at a Vineland, New Jersey data center operated by DataOne. The contract is worth up to $19.4 billion. Nebius now plans to deliver only just over half of the Microsoft capacity by the end of the year, with the remainder scheduled for Q2 2027.
Nebius attributed the delay to DataOne winding down temporary power generation sooner than expected as the site transitions to Bloom Energy fuel cells. The site’s power arrangements have also drawn regulatory and community scrutiny. Floodlight reported in August that at least 45 natural gas generators were operating there without permits for operating gas generators. New Jersey regulators fined the facility $1.1 million, finding the generator use violated federal law. Nearby residents have also brought a lawsuit over an allegedly constant humming noise.
The Microsoft contract summary says Microsoft can terminate affected service after a grace period if delivery dates are missed and no alternative capacity is offered. It also sets financial penalties for late delivery. The tranches were originally expected in 2025 and 2026, making the planned Q2 2027 delivery later than the original window.
Nebius said Microsoft had been involved in planning the revised timeline, but did not say whether the company had accepted the new dates. Microsoft has not publicly canceled the agreement.
Customer scrutiny adds uncertainty
Reports of Microsoft reassessing third-party data center projects make delivery especially relevant to Nebius. Bloomberg reported that Microsoft is increasing oversight of projects involving Nebius, IREN, and Nscale and weighing whether to sign new agreements. It also reported that Microsoft sent employees to the New Jersey site.
Microsoft said in its quarterly earnings report that capital spending was lower than expected because of delays at third-party sites. Bloomberg also reported that Microsoft would not exercise an option to more than double its Nscale agreement for a Texas data center, and had stopped being an anchor customer for Nscale’s planned Essex site after power delays.
These developments do not mean Microsoft has canceled its Nebius contract. They do show why timely delivery matters when a customer’s commitment is also part of the financing strategy. If a site misses deadlines, the provider may face extra costs and a slower path to revenue.
Growth forecasts meet execution risk
Nebius said the delays are at sites it does not control, while data centers it is building itself are coming online on time or ahead of schedule. The company expects those facilities to supply most of its new capacity from 2027. It also said Q3 deals included prepayments that more than cover the cost of the capacity being built for them.
The company forecast 2027 revenue of $12 billion to $13 billion and expects to reach pre-tax break-even in the fourth quarter. Third-quarter revenue was $981 million, up 571% from a year earlier, though roughly a third came from a one-time payment tied to a new partnership model.
Nebius lowered its 2026 revenue forecast by $200 million to $3 billion, citing delays at third-party sites such as the New Jersey project. Its shares ended the day down 17%. The revised outlook and share move underline the gap between ambitious investment plans and the practical work of bringing data center capacity online when customers need it.