The Amsterdam, Netherlands-based company said that this is the first instance of the company signing a long-term contract with a large tech company and that there are “more likely to come.”
Nebius will be delivering computing resources to Microsoft, using data center in New Jersey, as per the deal, which is valued between $17.4 billion to $19.4 billion by 2031. The company will provide Microsoft dedicated capacity from a new data centre in Vineland, New Jersey, beginning later this year.
Nebius, which includes Nvidia and Accel Partners as some of its backers, changed its name from Yandex NV last year after Russian investors bought Yandex’s Russian language search engine and other assets.
Microsoft has repeatedly highlighted the increasing demand for AI cloud infrastructure but the lack of capacity to address the same. As a result, it is increasing its focus towards third-party providers to address client demands, particularly from OpenAI, due to the increasing adoption of ChatGPT.
The Satya Nadella-led firm has already signed a deal with CoreWeave for additional AI computing power and OpenAI has also signed a deal with CoreWeave worth billions.
According to the SEC filing, the deal will significantly increase the growth of Nebius’ AI cloud business in 2026. Capex associated with the deal will be covered via cash from this deal and debt secured against the contract.
Nebius shares pared some of the initial surge and traded 42% higher in afterhours trading.
