Nebius plans to spend $40 billion to $45 billion on AI data center infrastructure in 2027. The Nebius AI data center spending plan comes as project delays raise questions about the industry’s aggressive expansion.
The company expects customer prepayments and contract-backed financing to fund most of its investment. However, delays at a New Jersey facility serving Microsoft have pushed some computing capacity into 2027.
Nebius AI Data Center Spending Could Reach $45 Billion
In its third-quarter financial results, Nebius reported revenue of $980.8 million, up 571% from a year earlier.
The company expects 2027 revenue of $12 billion to $13 billion. It also aims to reach pre-tax profitability by the fourth quarter.
Nebius expects customer prepayments and asset-backed financing to cover 75% to 85% of its planned spending.
The financing model depends on delivering data center capacity as promised. Construction delays could postpone revenue while equipment and financing costs continue accumulating.
Microsoft Data Center Delays Raise Concerns
A major concern involves Nebius’s Microsoft-backed data center in Vineland, New Jersey.
Under a September 2025 SEC filing, the Microsoft agreement was initially valued at $17.4 billion. Additional services could increase its value to $19.4 billion.
Only slightly more than half the contracted capacity is now expected by the end of 2026. The remaining portion is scheduled for the second quarter of 2027.
The agreement permits Microsoft to terminate delayed services under specified conditions. It also includes penalties for late delivery.
Bloomberg reported that Microsoft was increasing scrutiny of neocloud providers following project delays and rising costs.
Microsoft has not publicly canceled its Nebius agreement.
New Jersey Facility Faces Environmental and Noise Disputes
The delays coincide with environmental controversy surrounding DataOne, the operator of the Vineland facility.
A Floodlight investigation identified dozens of gas-powered generators operating without required permits.
New Jersey regulators subsequently fined DataOne more than $1 million over the generators. A follow-up investigation examined emissions and residents’ concerns about the project.
Nearby residents also filed a lawsuit alleging persistent noise from the facility, according to NJ.com reporting.
Nebius said the site is transitioning from temporary generators to Bloom Energy fuel cells. The power transition has contributed to delivery delays.
Can Nebius Finance Its AI Expansion?
Nebius ended the third quarter with approximately $7.4 billion in cash and cash equivalents.
It reduced its 2026 revenue outlook to the lower end of its previous $3 billion to $3.4 billion range. The company also raised its 2026 capital spending forecast to approximately $27 billion.
CEO Arkady Volozh acknowledged industrywide construction challenges but said Nebius’s company-controlled facilities remain on schedule or ahead.
The company expects those facilities to provide most of its new capacity from 2027.
Nebius’s expansion ultimately depends on securing financing, delivering infrastructure and maintaining customer demand. Its New Jersey delays illustrate the risks of rapidly scaling AI computing capacity.
