Nebius Group reports exceptional demand for its AI data center capacity, resulting in a complete inventory sell-out. To capitalize on this, the company is more than doubling its 2025 capital expenditure guidance. The new Capex target stands at approximately $5 billion.
This aggressive expansion strategy introduces considerable risks. Due to long lead times, the full financial impact of major new contracts is not anticipated until 2027.
To finance this growth, Nebius is considering corporate debt and asset-backed financing. The company is also weighing potential equity issuance, which could lead to significant dilution for existing shareholders.