Nebius Group (NASDAQ: NBIS) has raised its contracted power guidance three times in 2026, lifting its year-end target from 3 gigawatts in February to 5 gigawatts following its second-quarter results in August.
The company operates as the largest neocloud provider, a category of infrastructure businesses playing a central role in meeting surging demand for artificial intelligence computing capacity.
Tech giants including Meta Platforms and Microsoft have already turned to Nebius to help satisfy their AI capacity needs, with single deals often running into hundreds of megawatts.
The company’s most recent contracted power target of 5 gigawatts by the end of 2026 reflects both new site additions across North America and Europe and growing commitments from enterprise customers.
Nebius reported second-quarter revenue of $582.3 million, representing a 454% increase compared to the same period a year earlier, underscoring the pace at which the business is scaling.
The company said it plans to deploy more than 1 gigawatt of new capacity annually starting in 2027, signaling that its infrastructure buildout is transitioning from a rapid ramp to a sustained operational rhythm.
Construction is progressing at owned AI factories in the United States, and during the quarter the company added contracted-capacity sites in the United Kingdom, Estonia, and Finland.
The broader contracted power figure includes capacity secured through land and power commitments that has not yet been fully built or energized, meaning future revenue conversion depends on continued execution.
Nebius outlined a financing strategy combining more than $9 billion of expected customer prepayments in 2026 with asset-backed financing, corporate-level debt, and an at-the-market equity program to fund expansion.
The company raised $775 million in its first secured debt facility in July, backed by deployed GPU infrastructure and contracted cash flows from an investment-grade customer, providing a clearer picture of its capital structure.
Despite the stock nearly tripling year to date, analysts and investors continue to watch for additional guidance increases, given that Nebius has lifted its contracted power target at each quarterly update this year.
Building and operating AI data centers requires substantial capital investment in energy procurement, land acquisition, and hardware such as Nvidia’s processors, meaning profitability timelines remain an important variable for investors to monitor.
