The artificial intelligence sector has witnessed another significant milestone as Nebius Group finalises a substantial partnership with Microsoft, valued between $17.4 billion and $19.4 billion. The company, head-quartered in Amsterdam, will provide dedicated AI computing infrastructure to the technology giant through 2031, utilising its upcoming data centre facility in Vineland, New Jersey.
This collaboration signifies a monumental development within the rapidly expanding AI cloud computing market, where the demand continues to outpace available infrastructure capacity. The agreement positions Nebius as a key infrastructure provider to one of the world’s leading technology companies whilst establishing a foundation for accelerated growth in the coming years.
Scaling Infrastructure for an AI Future
The partnership centres on Nebius delivering high-performance AI computing resources from its purpose-built New Jersey facility, which is scheduled to commence operations later this year. The data centre represents a significant investment in AI-native infrastructure, designed specifically to handle intensive artificial intelligence workloads that have become increasingly demanding as generative AI technologies advance.
Microsoft’s decision to engage with Nebius reflects the ongoing capacity constraints within the AI infrastructure market. Major technology companies are actively seeking partnerships with specialised providers to secure reliable access to computing power, particularly as their AI initiatives expand rapidly. The five-year agreement provides Microsoft with predictable access to dedicated capacity whilst offering Nebius substantial revenue visibility through 2031.
Financing the Future
The company expects to finance the associated capital expenditure through a combination of cash flow generated by the agreement and debt issuance secured against the contract terms. The credit quality of Microsoft as counterparty is expected to enhance financing conditions for these arrangements.
‘In addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies. I’m happy to announce the first of these contracts, and I believe there are more to come.The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond.’
Arkady Volozh, Founder & Chief Executive, Nebius
The organisation is currently evaluating additional financing options that could enable accelerated expansion beyond original growth projections. These considerations reflect management’s confidence in securing similar arrangements with other leading technology companies and AI laboratories, suggesting this Microsoft partnership may serve as a catalyst for further significant contracts.
Full-Stack AI Infrastructure
Nebius operates an AI-native cloud platform constructed specifically for intensive artificial intelligence applications. The company has developed proprietary software and hardware solutions in-house, creating a comprehensive technology stack that addresses the unique requirements of AI model development, training, and deployment.
The platform provides AI developers with integrated compute, storage, managed services, and development tools necessary for building and operating sophisticated AI applications. This full-stack approach differentiates the company from traditional cloud providers, positioning it advantageously within the specialised AI infrastructure market where performance and efficiency requirements continue to escalate.
Broader Business Portfolio
Beyond its core AI cloud operations, the company maintains several additional business units operating under distinct brand identities. Avride represents one of the most experienced autonomous driving development teams globally, working on self-driving vehicle technology and delivery robotics. Meanwhile, TripleTen has established itself as a prominent educational technology provider in the United States and select international markets, focusing on technology skills training and career development.
The organisation also maintains equity positions in other technology businesses, including ClickHouse and Toloka, demonstrating a broader investment approach within the technology sector.