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6d ago

Nebius Raises 2026 Capex to $20–$25 Billion After Q1 Revenue Beat

The results signal a scramble for scarce AI compute capacity.

Nebius raised its contracted power target for year-end 2026 to more than 4 gigawatts, up from a prior target of more than 3 gigawatts, and has already secured 3.5 gigawatts of that new target.
A view shows the Nebius AI UK data centre, a new facility hosting NVIDIA and other computer firms, at Ark Data Centres, in Chertsey, Britain, November 6, 2025. REUTERS/Toby Melville
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Overview

  • Nebius, which reported results Wednesday, posted $399 million in Q1 revenue—about eight times a year ago—lifting the stock roughly 12% to 15% in early trading.
  • Management lifted 2026 capital spending to $20 billion to $25 billion after investing about $2.5 billion in Q1 to buy Nvidia GPUs and expand data centers.
  • The company said demand outstrips supply and now targets more than 4 gigawatts of contracted power by year-end, with about 3.5 GW already secured.
  • In the U.S., Nebius broke ground Tuesday on a 1.2 GW AI factory in Missouri and announced a Pennsylvania site with up to 1.2 GW, bringing construction jobs and new permanent roles.
  • Results showed momentum and strain: adjusted EBITDA turned positive at $129.5 million, adjusted net loss was $100.3 million, and analysts warned heavy spending could squeeze margins even with support from Nvidia’s $2 billion stake and Meta’s contract worth up to $27 billion.