Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
Add as preferred source on GoogleNebius Group reports a surge in capital expenditures driven by AI processors and data center investments, aiming for significant growth by 2026.
Feb 12 (Reuters) - Nebius Group reported a sharp rise in quarterly capital spending on Thursday, driven by purchases of artificial intelligence processors and growing data center investments, as the AI cloud firm rushes to secure capacity to meet soaring demand.
The Amsterdam-based company, which counts tech giants Microsoft and Meta among its customers, said it would continue to expand its data center footprint with nine new sites across the U.S., France, Israel and the UK.
Shares of the company, which surged more than 200% last year, were volatile in premarket trading. They were last up nearly 2%.
Nebius is one of the major so-called neocloud companies that offer hardware and cloud capacity as services to other tech firms. Its core business involves providing Nvidia processors and AI cloud infrastructure.
Along with its larger rival CoreWeave, Nebius has benefited from the relentless enterprise spending on AI over the past several years.
"Demand from enterprises and AI native customers continues to outpace supply, allowing us to sell future capacity well in advance ... We are very focused on investing resources to continue expanding our capabilities in 2026 both organically and through targeted acquisitions," Nebius CEO Arkady Volozh said in a letter to shareholders.
Capital expenditures ballooned to about $2.1 billion in the December quarter, compared with just $416 million in the prior year period.
The investments have helped Nebius secure more than 2 gigawatts (GW) of contracted power, well ahead of its projections. It now expects to have more than 3 GW of contracted power by year-end, up from its prior outlook of over 2.5 GW.
Nebius reported a more than six-fold surge in revenue to $227.7 million for the fourth quarter, but it still missed estimates of $246.1 million, according to data compiled by LSEG. Net loss widened to $249.6 million from $133.2 million a year earlier.
The company expects to end 2026 with an annualized revenue run-rate of $7 billion to $9 billion, compared with the $1.25 billion at the end of 2025.
(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)
Capital expenditure (capex) refers to the funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems, enabling them to perform tasks such as learning and problem-solving.
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems, ensuring data management and processing.
Revenue is the income generated from normal business operations, typically from the sale of goods and services to customers.
A net loss occurs when a company's total expenses exceed its total revenues, indicating that the company has lost money during a specific period.
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