en.Wedoany.com Reported - AI cloud infrastructure company Nebius Group N.V. reported first-quarter revenue of $399 million, with signed power capacity surpassing 3.5 GW and its year-end 2026 target raised to over 4 GW, citing sustained AI computing demand that continues to outpace industry supply capacity.
Nebius founder and CEO Arkady Volozh stated in a letter to shareholders that as more industries embrace artificial intelligence and enterprises move from experimentation to practical application, computing and cloud demand is far exceeding existing capacity. Nebius is meeting this demand through a full-stack, native AI cloud. First-quarter AI cloud revenue was $390 million, up 841% year-over-year and 82% quarter-over-quarter, accounting for approximately 98% of total company revenue.
Power capacity expansion is a core element of Nebius's current growth strategy. The company's self-owned power scale continues to expand rapidly, with signed power capacity exceeding 3.5 GW, significantly surpassing the previously set year-end target of 3 GW. Over 75% of signed power comes from self-owned infrastructure assets, reflecting a strategic shift toward long-term control over power, land, and AI data center operations. First-quarter capital expenditures were approximately $2.5 billion, with a full-year 2026 capex plan of $16 billion to $20 billion.
At the physical infrastructure level, Nebius has secured two gigawatt-scale campus sites in the United States. The Independence, Missouri campus has officially broken ground. This multi-building project sits on a 400-acre site, will create approximately 1,200 construction jobs during the building process, employ 130 high-tech staff once fully operational, and is expected to generate $650 million in local tax revenue over 20 years. Nvidia Vice President of External Affairs Ned Finkle described the project as an AI factory that will power the next era of computing. The newly announced self-owned AI factory site in Pennsylvania supports up to 1.2 GW of power capacity, with phased production planned to begin in 2027. A 310 MW dedicated AI factory is also under construction in Finland, positioned as one of the largest AI factories in Europe.
GPU deployment pace is accelerating simultaneously. The company expects to achieve 800 MW to 1 GW of connected power capacity by the end of 2026 and plans to deploy Nvidia Vera Rubin NVL72 systems in US and EMEA facilities starting in the second half of 2026. Nvidia made a $2 billion strategic investment in Nebius in March 2026, with the partnership extending into hardware integration, AI factory design, and inference optimization.
New signed business volume in the first quarter grew approximately 3.5 times quarter-over-quarter, with annual recurring revenue reaching $1.92 billion at quarter-end, up from $1.25 billion at the end of December 2025. Nebius signed a five-year, $27 billion agreement with Meta, which includes a $12 billion compute capacity purchase commitment and a $15 billion flexible capacity framework, with execution planned to begin in 2027. The company's full-year revenue guidance is $3 billion to $3.4 billion, with an annual recurring revenue target of $7 billion to $9 billion.
Nebius continues to enhance its full-stack capabilities through acquisitions, with recent transactions including the approximately $643 million acquisition of AI inference optimization company Eigen AI and the onboarding of the Clarifai core team to strengthen its TokenFactory inference platform. The company has moved beyond a pure GPU compute leasing model, positioning itself as a full-stack AI cloud provider covering infrastructure, training, inference, orchestration, and agentic AI services. Cash and equivalents at the end of the first quarter stood at $9.3 billion, with total financing for the quarter reaching $6.3 billion, providing a financial buffer for ongoing infrastructure development.
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