Nebius Group reported a nearly eightfold increase in quarterly revenue Wednesday, sending shares up 14% in early trading as demand for AI infrastructure and cloud services continues to surge.
The Amsterdam-based neocloud company is racing to secure capacity and power, boosting its annual capital expenditure forecast to between $20 billion and $25 billion, up from a prior projection of $16 billion to $20 billion.
With customers including Meta and Microsoft, Nebius has carved out a significant slice of the lucrative AI and cloud infrastructure market by providing Nvidia GPUs and computing platforms to developers.
CEO Arkady Volozh said demand continues to exceed available capacity. "We typically see several customers competing for every GPU we bring online," Volozh said, adding that higher spending reflected visibility into 2027 demand, not cost pressures.
First-quarter capex reached approximately $2.5 billion, compared with $544 million a year earlier, driven by investments in graphics processing units and data center hardware.
Nebius has expanded through strategic acquisitions and large contracts, agreeing to buy startup Eigen AI for about $643 million, and signing a long-term deal with Meta to provide up to $27 billion worth of computing capacity over five years.
The company announced a new Pennsylvania site Wednesday to support 1.2 GW of power once fully operational.
Revenue for the three months ended March jumped to $399 million from $50.9 million a year ago, beating the LSEG estimate of $371.4 million.
Nebius now expects to have more than 4 GW of contracted power by year-end, up from its prior forecast of more than 3 GW.