Nebius plans roughly $40–$45 billion in AI cloud expansion spending for 2027

Nebius, a cloud provider that rents out computing capacity for AI, outlined a major 2027 expansion on its November 12 third-quarter earnings call. Coverage described spending of roughly $40 billion, with another report putting planned capital expenditure—investment in long-lived assets such as data centers and equipment—at $40–$45 billion, far above Wall Street's expectations.^[1][2]

Management expects 2026 revenue at the low end of its $3–$4 billion guidance range and targets $12–$13 billion for 2027. Those spending and revenue figures remain plans and targets; coverage also reports delays affecting projects.^[2][3]

To turn the expansion into revenue, Nebius must first deliver computing facilities that customers can use. That creates potential demand for equipment and data-center construction, but project delays could push back supplier orders or revenue recognition and postpone Nebius's own revenue from new capacity.^[1][3]

Stronger customer prepayments help Nebius obtain construction funding before it delivers services, although planned spending still far exceeds its 2027 revenue target. If it borrows, financing costs affect the expansion's returns; issuing new shares would reduce existing shareholders' percentage ownership, a dilution risk already flagged in coverage.^[3][2] The US 10-year Treasury yield rose from 4.84% on November 5 to 5.15% on November 13, creating a less favorable benchmark-rate backdrop for borrowing.

Impact

What to watch next

• November 18 FOMC minutes: policymakers' discussion of the rate outlook will help assess whether financing conditions could ease for capital-intensive expansions like this one.