Nebius Lifts 2026 Contracted Power Target to 5 Gigawatts as AI Demand Drives Expansion
Updated
Updated · currently.att.yahoo.com · Aug 16
Nebius Lifts 2026 Contracted Power Target to 5 Gigawatts as AI Demand Drives Expansion
3 articles · Updated · currently.att.yahoo.com · Aug 16
Summary
Nebius now expects 5 gigawatts of contracted power by the end of 2026, up from 4 gigawatts in May and 3 gigawatts in February.
New North American and European sites and AI compute deals with customers including Meta and Microsoft are driving the higher target, with Nebius saying it could already sell all of its 2027 capacity.
Q2 revenue reached $582.3 million, up 454% year over year, as the larger power pipeline raises the ceiling for future data-center revenue once capacity starts being delivered in 2027.
Build-out costs remain heavy: Nebius issued $4 billion in convertible notes earlier this year, though it said 70% of deals include partial prepayments that often cover 50% to 60% of capital spending.
The company sees annual recurring revenue rising to as much as $9 billion by year-end, suggesting financing pressure could ease if AI demand and contract conversions keep accelerating.
With massive prepayments and soaring debt, is Nebius building an unstoppable AI empire or a highly leveraged infrastructure bubble waiting to burst?
Can Nebius's billion-dollar off-grid fuel cell gamble truly bypass the strained power grid, or will energy limits ultimately crush their massive expansion dreams?