Nebius will initially provide Microsoft access to dedicated GPU infrastructure capacity at its new data center in Vineland, New Jersey, from later this year
In sum – what to know:
Microsoft secures Nebius capacity – The contract covers AI infrastructure from Nebius’s new Vineland, New Jersey data center, with services set to start later in 2025.
Multi-billion, multi-year deal – Nebius called this its first long-term contract with a major tech company, positioning it as a foundation for additional agreements.
Financing expansion plans – The company will use cash flow and debt backed by the contract, with further funding options under evaluation to accelerate AI cloud growth in 2026.
Dutch data center company Nebius has entered into a multi-year, multi-billion dollar agreement with Microsoft to provide dedicated AI infrastructure capacity from its new data center in Vineland, New Jersey, the former said in a release.
The deal has been signed for a five-year term and is worth $17.4 billion over the period, although further services and capacity could bring the deal up to $19.4 billion.
Under the terms of the deal, Nebius will initially provide Microsoft access to dedicated GPU infrastructure capacity at its new data center in Vineland, New Jersey, from later this year. The data center was originally announced in March, with a 300 MW initial capacity and potential to expand by another 400 MW.
Nebius said the agreement is the first of several long-term partnerships it is pursuing with large technology companies and AI labs.
Nebius founder and CEO Arkady Volozh said: “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.”
The company also said it plans to finance the required capital expenditure through a mix of cash flow generated from the deal and debt backed by the contract. Additional financing options are under review as Nebius looks to accelerate expansion of its AI cloud operations beyond its original plans.
Nebius, headquartered in Amsterdam and listed on Nasdaq, operates research and development hubs across Europe, North America and Israel.
