Nebius tests the neocloud playbook with $40 billion in planned spending

Nebius announced $40 billion in planned spending for 2027, exceeding Wall Street expectations, but its financing strategy depends on customer prepayments and loans backed by contracts. A major customer, Microsoft, is facing months-long delays at a New Jersey data center due to regulatory issues and lawsuits, which could lead to penalties or cancellation. Microsoft is reportedly tightening oversight of neocloud partners. Nebius claims its own-built data centers are on schedule and will provide most new capacity from 2027. The company reported Q3 revenue of $981 million, up 571% year-over-year, but cut its 2026 revenue forecast by $200 million and saw shares fall 17%.

(Source：TechCrunch)