{"id":753143,"date":"2026-11-13T08:50:28","date_gmt":"2026-11-13T05:50:28","guid":{"rendered":"https:\/\/buradabiliyorum.com\/en\/nebius-tests-the-neocloud-playbook-with-40-billion-in-planned-spending\/"},"modified":"2026-11-13T08:50:28","modified_gmt":"2026-11-13T05:50:28","slug":"nebius-tests-the-neocloud-playbook-with-40-billion-in-planned-spending","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nebius-tests-the-neocloud-playbook-with-40-billion-in-planned-spending\/","title":{"rendered":"Nebius tests the neocloud playbook with $40 billion in planned spending"},"content":{"rendered":"
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In its third-quarter earnings <\/a>call Thursday, the neocloud company Nebius laid out $40 billion in planned spending for 2027, far more than Wall Street had expected. It\u2019s an ambitious plan, but it rests on a string of planned projects that are already starting to show cracks.<\/p>\n

Nebius plans to fund the buildout by relying on customer pre-payments and loans backed by customer contracts \u2014 essentially using the future value of its data centers to finance their construction. But that can be a risky strategy if those projects get bogged down by delays or cancellations.<\/p>\n

\u201cBuilding at this scale is hard, and delays are part of our industry right now,\u201d CEO Arkady Volozh said during Thursday\u2019s earnings call. \u201cWe are not immune.\u201d<\/p>\n

The earnings announcement comes on the heels of reports<\/a> that Microsoft is cooling on neocloud deals that aren\u2019t delivering on time. That\u2019s a problem for companies like Nebius, whose financing strategy is becoming more dependent on repayments. Because if it can\u2019t get to capacity on time, it will keep piling on costs while revenues slip.<\/p>\n

One of Nebius\u2019 largest customers is Microsoft, which is paying for AI computing capacity at a Vineland, New Jersey, data center that is now months behind schedule. Nebius\u2019 contract with Microsoft is worth up to $19.4 billion, but it\u2019s already letting deadlines slip. Only just over half of the Microsoft capacity is now planned for delivery by the end of the year, with the rest coming in Q2 2027.\u00a0<\/p>\n

The delay is because DataOne, the third-party operator of the site, \u201cdecided to wind down the temporary generation faster than it was expected,\u201d according to Andrey Korolenko, chief product and infrastructure officer, as the site switches over to Bloom Energy fuel cells.<\/p>\n

Still, that transition wasn\u2019t entirely by choice. In August<\/a>, the investigative site Floodlight identified at least 45 natural gas generators in operation at the DataOne site, even though it had not received any permits for operating gas generators. New Jersey regulators fined the DataOne facility<\/a> $1.1 million in response, finding that the use of the generators violated federal law.<\/p>\n

DataOne is also facing a noise-complaint lawsuit from nearby residents over a constant humming noise<\/a> allegedly emitted by the data center.<\/p>\n

According to Nebius\u2019 summary<\/a> of its Microsoft contract, Microsoft can terminate affected service after a grace period if dates are missed and no alternative capacity is offered. The tranches were originally meant to be deployed in 2025 and 2026, so a Q2 2027 delivery date falls well beyond that window. The contract also includes financial penalties for late delivery.<\/p>\n

Nebius said that Microsoft \u201chas been part of the planning process.\u201d Nebius did not say whether Microsoft has agreed to the new dates, but Microsoft has not publicly canceled anything.<\/p>\n

TechCrunch has reached out to Nebius, Microsoft, and DataOne for comment.<\/p>\n

On the call, Marc Boroditsky, Nebius\u2019s chief revenue officer, said the company\u2019s deals with Microsoft and Meta both came with significant prepayment, which arrived long before delivery. But Bloomberg reported last week<\/a> that Microsoft is tightening oversight on projects run by third parties, including Nebius, IREN, and Nscale, and debating whether it\u2019s worth signing new agreements. Microsoft also sent employees to the site in New Jersey, per Bloomberg.\u00a0<\/p>\n

In its own quarterly earnings report, Microsoft noted that its capex spend was lower than expected due to third-party delays. The company is clearly not above pulling back from planned agreements where its partner doesn\u2019t meet its share of the bargain. Bloomberg also reported that Microsoft won\u2019t use an option to more than double its Nscale agreement for a Texas data center and recently stopped being an anchor customer for Nscale\u2019s planned Essex site after power delays.\u00a0<\/p>\n

Nebius says the delays it faces are coming from sites it doesn\u2019t control, with the data centers it is building itself coming online on time or ahead of schedule. Those, Nebius says, will supply most of its new capacity from 2027. New deals signed in Q3 came with prepayments that more than cover the cost of building capacity behind them, says Boroditsky. Nebius ended the quarter with $7.4 billion in cash.\u00a0<\/p>\n

Total prepayments plus asset-backed financing of investment-grade contracts are expected to cover up to 85% of the $40 to $45 billion 2027 capex spend. CFO Maria Del Dado Alonso Sanchez named Microsoft and Meta as contracts that can be financed this way. Boroditsky also said Nebius could \u201ctap prepayments to shore up any additional cash requirements.\u201d<\/p>\n

Nebius forecast 2027 revenue of $12 to $13 billion, and said it expects to break even on a pre-tax basis by the fourth quarter.\u00a0<\/p>\n

Nebius reported third-quarter revenue of $981 million, up 571% from a year earlier. Roughly a third of that was a one-time payment tied to a new partnership model. Nebius cut its 2026 revenue forecast by $200 million to $3 billion, citing delays to third-party sites like New Jersey. Shares ended the day down 17%.<\/p>\n<\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

In its third-quarter earnings call Thursday, the neocloud company Nebius laid out $40 billion in planned spending for 2027, far more than Wall Street had expected. It\u2019s an ambitious plan, but it rests on a string of planned projects that are already starting to show cracks. Nebius plans to fund the buildout by relying on…<\/p>\n","protected":false},"author":1,"featured_media":753144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2026\/11\/GettyImages-2300447831.jpg?w=1024","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[77337,164094,158615,152371],"class_list":["post-753143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-ai","tag-ai-compute","tag-cloud-compute","tag-nebius"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/753143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=753143"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/753143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/753144"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=753143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=753143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=753143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}