Nebius outlines $40 billion 2027 spending plan amid customer delays and financing risks

Nebius announced a $40 billion spending plan for 2027, financed by customer pre-payments and loans secured by contracts. CEO Arkady Volozh acknowledged current industry delays impacting this aggressive financing model. This model faces pressure from major clients. Nebius's contract with Microsoft, valued up to $19.4 billion, at the Vineland, New Jersey data center is significantly behind schedule. Only slightly more than half of this capacity is set for delivery by year-end, with the rest scheduled for Q2 2027, missing original 2025 and 2026 windows. This delay is attributed to DataOne winding down temporary generation while transitioning to Bloom Energy fuel cells. Nebius's CRO, Marc Boroditsky, confirmed substantial prepayments from Microsoft and Meta. The company projects 2027 revenue between $12 and $13 billion and ended the quarter with $7.4 billion in cash, expecting prepayments and asset-backed financing to cover up to 85% of the 2027 capital expenditure.