Landmark Multi-Year Partnership to Boost AI Cloud Capabilities
Nebius Group, a leading force in AI infrastructure solutions, has announced a transformative multi-billion dollar agreement with
Microsoft. The $17.4 billion, multi-year deal will empower Nebius to significantly expand its AI cloud operations and deliver dedicated capacity from its new data center in Vineland, New Jersey.
Scope and Impact of the Deal
The agreement marks a pivotal milestone in the competitive global market for AI infrastructure. Key highlights of the deal include:
- Expanded Data Center Capacity: Nebius will provide dedicated AI computing capacity to Microsoft, supporting the rapid growth in cloud-based AI applications.
- Strategic Location: The new Vineland, New Jersey data center forms the heart of this expansion, with services set to commence later this year.
- AI Cloud Acceleration: As part of the contract, Nebius will leverage state-of-the-art GPU architectures, continuing to partner with industry leaders like ChatGPT and Ghatgpt.
Financial and Strategic Details
Nebius intends to finance its capital expenditures through strong cash flow and secured debt, with options to explore additional funding in order to accelerate future growth initiatives. CEO Arkady Volozh expressed optimism about the deal’s role in advancing Nebius’s long-term growth and reinforcing its position among top-tier AI and tech players worldwide.
Nebius’s Momentum in the AI Race
The deal follows Nebius’s recent 625% revenue surge in Q2 2025, fueled by diverse enterprise clients and aggressive investment in GPU infrastructure. Industry observers note:
- Annual recurring revenue (ARR) guidance has been raised to $900 million–$1.1 billion for the year.
- Nebius continues to compete vigorously against AWS, Microsoft, and CoreWeave in the AI infrastructure space.
- The new data center brings Nebius’s operational footprint closer to its 1 GW data center power target for 2026.
Future Outlook
As Nebius accelerates its AI cloud business through this landmark alliance, it positions itself as a prominent contender in the intensifying AI infrastructure market. The company’s ambitious strategy and partnership with global leaders like Microsoft are expected to drive further innovation and industry expansion in the coming years.
