Nebius' $40B AI data center plan hits delays
nebios $40 billion plan for 2027 faces delays, relies on customer pre-payments, and risks financial penalties. microsoft, a major customer, may tighten oversight.
nebios, a neocloud company, laid out $40 billion in planned spending for 2027, but its projects are already showing cracks. a $19.4 billion contract with microsoft for ai computing capacity at a new jersey data center is months behind schedule, with only half of the capacity planned for delivery by the end of the year. the delay is due to issues with dataone, the third-party operator of the site, including the use of unpermitted natural gas generators and a noise-complaint lawsuit. nebios relies on customer pre-payments and loans backed by customer contracts to fund its projects, which poses a risk if delays or cancellations occur. microsoft has not publicly canceled the agreement, but is tightening oversight on projects run by third-party providers.