Nebius wins up to $19.4 billion data center deal with Microsoft; shares jump

Published 08/09/2025, 22:16
Updated 09/09/2025, 02:54
© Reuters.

Updates with share moves, additional context

Investing.com-- Shares of Nebius Group (NASDAQ:NBIS) surged more than 40% in extended trading on Monday after the Amsterdam-based AI infrastructure provider announced a landmark agreement with Microsoft Corp.

Under the pact, Nebius will supply GPU-equipped infrastructure capacity to Microsoft over a five-year term, delivering services from its upcoming Vineland, New Jersey data centre. The initial contract is valued at $17.4 billion, with the potential to rise to $19.4 billion if Microsoft exercises its additional capacity options.

Cash flow from the agreement will help finance part of the capital expenditure associated with the project. The GPU infrastructure will be delivered in multiple phases, with specific deployment timelines set for the next two years.

Nebius, which emerged from the international operations of Yandex , is a “neocloud” provider that delivers GPU-powered cloud infrastructure tailored for training and deploying artificial intelligence models.

Arkady Volozh, founder and CEO of Nebius, said:

“Nebius’s core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well. We have also said that, 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.”

Nasdaq-listed Nebius shares rose 44.4% to $92.49 in after-hours trading after closing 2.2% lower in the regular session.

(Ayushman Ojha contributed to this report)   

 

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