# Nebius Raises Contracted Power Target to 5GW, Plans 1GW Annual Deployments > Source: > Published: 2026-08-13 09:34:38.692801+00:00 # Nebius Raises Contracted Power Target to 5GW, Plans 1GW Annual Deployments - Nebius raised its year-end 2026 contracted-power target to 5GW, up from more than 4GW in its prior guidance. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) - The company plans to deploy more than 1GW of new AI capacity per year starting in 2027. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) - Nebius expects more than $9 billion in customer prepayments during 2026; it said recent prepayments covered 50% to 60% of associated capex. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) - The company entered its first secured debt financing in July, raising $775 million at SOFR plus 2.50%. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z)[[2]](https://www.sec.gov/Archives/edgar/data/1513845/000110465926084452/tm2620683d1_ex99-1.htm) - Nebius reported $5.657 billion in second-quarter purchases of property, equipment and intangible assets. [[3]](https://assets.nebius.com/assets/dfe7a7f3-771e-4653-94e8-8f86bf126b1d/PR.pdf?_gl=1%2Awtnwct%2A_gcl_au%2ANzUxNDQ2ODcyLjE3ODY1NzMzNzc.&cache-buster=2026-08-12T11%3A58%3A03.516Z) Nebius raised its year-end 2026 contracted-power target to 5GW and said it plans to deploy more than 1GW of AI capacity annually beginning in 2027, extending an expansion program built around contracted demand and multiple financing sources. The Amsterdam-based neocloud disclosed the plan in its second-quarter shareholder letter published August 12, 2026. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) The broader contracted-power figure includes capacity secured through land and power commitments that is not yet fully built or energized. Nebius said construction is progressing at owned AI factories in the US and that it added contracted-capacity sites in the UK, Estonia and Finland during the quarter. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) The financing plan combines more than $9 billion of expected customer prepayments in 2026 with asset-backed financing, corporate-level debt and an at-the-market equity program. Nebius raised $775 million in its first secured debt facility in July, backed by deployed GPU infrastructure and contracted cash flows from an investment-grade customer. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z)[[2]](https://www.sec.gov/Archives/edgar/data/1513845/000110465926084452/tm2620683d1_ex99-1.htm) ## The Capacity Plan Nebius increased its contracted-power guidance from more than 4GW to 5GW at year-end 2026. The company said the pace of deployment will accelerate as it targets more than 1GW of new capacity per year starting in 2027. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) “The pace at which we bring capacity to market will accelerate as we plan to deploy more than 1 GW per year, starting in 2027,” founder and CEO Arkady Volozh wrote in the shareholder letter. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) Nebius said the buildout will support AI-cloud customers and long-term strategic contracts. It delivered all capacity tranches committed to Microsoft through the end of the second quarter and said capacity supporting its second Meta agreement remains on track to come online in early 2027. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) ## Funding the Buildout Nebius reported $5.657 billion in second-quarter purchases of property, equipment and intangible assets, compared with $510.6 million in the year-earlier quarter. [[3]](https://assets.nebius.com/assets/dfe7a7f3-771e-4653-94e8-8f86bf126b1d/PR.pdf?_gl=1%2Awtnwct%2A_gcl_au%2ANzUxNDQ2ODcyLjE3ODY1NzMzNzc.&cache-buster=2026-08-12T11%3A58%3A03.516Z) Customer prepayments are a key funding source. Nebius expects more than $9 billion of prepayments during 2026 and said 70% of its second-quarter deals included prepayments covering 50% to 60% of associated capex. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) The company is also pursuing asset-backed and corporate-level debt. Its July facility carries pricing of SOFR plus 2.50% and matures October 31, 2030. Nebius said the facility is backed by deployed GPU infrastructure and contracted cash flows, and that it has more than $40 billion of customer commitments. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z)[[2]](https://www.sec.gov/Archives/edgar/data/1513845/000110465926084452/tm2620683d1_ex99-1.htm) Nebius also began using its at-the-market equity program during the second quarter. Through June 30, it had sold 12.7 million Class A shares at a weighted-average price of $223.60, generating approximately $2.84 billion in gross proceeds. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) ## Commercial Backing Nebius said it closed four large AI-cloud deals in the second quarter with average total contract value above $1 billion per deal. The agreements carried annual contract value of $20 million to $25 million per megawatt, while roughly 70% included customer prepayments. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) The company reported second-quarter revenue of $582.3 million, up 454% year over year, and AI-cloud revenue of $575 million. AI-cloud adjusted EBITDA margin reached 50%, according to the shareholder letter. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) Nebius identified Reflection and Cohere among the quarter’s major customer wins. It also has long-term infrastructure agreements with Microsoft and Meta, including a Meta agreement valued at up to $27 billion over five years, with deployments beginning in early 2027. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z)[[4]](https://nebius.com/newsroom/nebius-signs-new-ai-infrastructure-agreement-with-meta) ## Asset-Light Expansion Alongside owned data centers and colocation capacity, Nebius introduced an asset-light model in the second quarter. Under the structure, partners finance and own AI data center assets while Nebius supplies its cloud software, systems architecture, reference designs and go-to-market organization. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) Nebius said the model is intended to convert partner-financed capacity into revenue with lower capital outlay, supplementing its owned and colocated portfolio. [[1]](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) The 1GW-per-year target is a forward-looking company plan rather than connected operating capacity. Nebius’s filing cautioned that its capacity-buildout, financing and performance projections are subject to risks including access to power, equipment availability, construction timelines and financing conditions. [[3]](https://assets.nebius.com/assets/dfe7a7f3-771e-4653-94e8-8f86bf126b1d/PR.pdf?_gl=1%2Awtnwct%2A_gcl_au%2ANzUxNDQ2ODcyLjE3ODY1NzMzNzc.&cache-buster=2026-08-12T11%3A58%3A03.516Z) ## Companies mentioned ## Further sources [[1] Nebius Group Letter to Shareholders, Q2 2026, published August 12, 2026. ↗](https://assets.nebius.com/assets/a6ecfd85-a6cb-4967-8ef7-9a25bd261f9c/SHLQ226.pdf?cache-buster=2026-08-12T11%3A54%3A46.695Z) [[2] Nebius announcement filed with the SEC describing the $775 million secured debt… ↗](https://www.sec.gov/Archives/edgar/data/1513845/000110465926084452/tm2620683d1_ex99-1.htm) [[3] Nebius Q2 2026 financial-results release, including capital expenditures and fo… ↗](https://assets.nebius.com/assets/dfe7a7f3-771e-4653-94e8-8f86bf126b1d/PR.pdf?_gl=1%2Awtnwct%2A_gcl_au%2ANzUxNDQ2ODcyLjE3ODY1NzMzNzc.&cache-buster=2026-08-12T11%3A58%3A03.516Z) [[4] Nebius announcement describing its five-year AI infrastructure agreement with M… ↗](https://nebius.com/newsroom/nebius-signs-new-ai-infrastructure-agreement-with-meta) The stories that matter, in one email. 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