Rent-a-GPU outfit Nebius promises rapid 1 GW powerup plan isn't nebulous

Rent-a-GPU company Nebius has ambitious plans to bring online a gigawatt of datacenter capacity each year, starting in 2027. CEO Arkady Volozh expressed confidence in this goal during the company's recent earnings call. However, achieving this ambitious target will require significant financial investment. In 2026, Nebius anticipates spending between $20 billion and $25 billion on capital expenditures to bring between 800 and 1,000 MW of computing power online.

Much of this funding will come from customer prepayments – essentially deposits paid by clients for future capacity. As of now, Nebius has secured $9 billion in such prepayments for the current year. To finance its expansion, Nebius is leveraging its GPUs and contracted cash flows to secure debt financing. The company has already secured a $775 million asset-backed debt facility, and CFO Dado Alonso expects this financing trend to continue.

Nebius is also exploring an asset-light model where third-parties finance, build, and operate data centers while Nebius provides the platform and demand. CEO Volozh is confident that each megawatt deployed will generate between $20 million and $50 million in revenue. If Nebius manages to reach its goal of a gigawatt of capacity, it could bring in $20 to $50 million per megawatt.

However, the company notes that not all of the capacity will be active and generating revenue until 2027. Even if Nebius can achieve its goal, it will still face significant losses, as the company posted an operating loss of $176 million in Q2, up from $111 million in the same quarter last year. Despite the challenges, Nebius's share price surged more than 30 percent following the earnings report, indicating strong investor confidence.