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September 11, 2025
📈 Amsterdam-based neocloud provider Nebius Group saw its shares soar over 60% in extended trading on Monday following the announcement of a landmark US$19.4 billion infrastructure agreement with Microsoft. The five-year deal will supply dedicated cloud capacity from Nebius’s new data centre in Vineland, New Jersey, beginning later this year.
The agreement marks a major milestone for Nebius, which has already doubled in value this year amid rising demand for AI infrastructure. Prior to the surge, the company’s market capitalization stood at just over $15 billion.
🤝 Nebius’s rapid ascent has been fueled by strategic partnerships, including investments from Accel, NVIDIA, and Orbis Investments, as well as collaborations with Meta Platforms and DDN. These alliances have positioned Nebius as a preferred provider within the NVIDIA Partner Network.
Microsoft’s move reflects broader industry challenges, with cloud capacity constraints prompting the tech giant to expand its capital expenditure to $80 billion in FY25. CEO Satya Nadella recently noted, “I am power-constrained, not chip-constrained,” underscoring the urgency of external infrastructure support.
🌐 As competition intensifies in the AI infrastructure space, Nebius joins a growing cohort of neocloud firms offering GPU-backed services at lower costs than traditional hyperscalers. CEO Arkady Volozh confirmed the Microsoft deal is the first of several long-term contracts in the pipeline, aimed at accelerating Nebius’s AI cloud growth through 2026 and beyond.
