Nebius lays out $40 billion spending plan as delays hit its Microsoft site
Financing the buildout on customer prepayments and contract-backed loans puts its delivery timelines under close scrutiny.
Nebius outlined roughly $40 billion of planned spending for 2027 on its third-quarter earnings call, a figure well above analyst expectations, and plans to pay for it largely with customer prepayments and loans secured by contracts. Its CEO acknowledged that delays are common in the industry and that the company is not exempt. A key test is a Vineland, New Jersey site leased to Microsoft under a contract worth up to $19.4 billion: only about half the Microsoft capacity is now slated for delivery by year-end, with the remainder pushed to Q2 2027, and Microsoft may terminate affected service if dates slip past a grace period. Reports say Microsoft is tightening oversight of third-party partners, which raises doubts about the financing model. Nebius reported third-quarter revenue of $981 million, up 571% year over year, and lowered its 2026 revenue forecast by $200 million, with shares falling 17% on the day.
Why it matters
The plan ties Nebius's growth to meeting delivery dates for large customers. With only about half of the Microsoft capacity at Vineland due by year-end, and Microsoft able to end affected service after a grace period, a slip in schedule could cut into the revenue and financing the company depends on. Its chief executive acknowledged that delays are common across the industry and that Nebius is not immune, so the next few quarters will show whether the model holds up.
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