Nebius Group, an Amsterdam-based AI infrastructure specialist, has signed a multi-year agreement to provide dedicated compute capacity to Microsoft from its new Vineland, New Jersey data center beginning later this year. The deal marks Nebius’s first long-term committed contract with a leading tech company and is expected to drive accelerated growth in its AI cloud business.
Under the agreement, Microsoft will draw on Nebius’s purpose-built hardware and software stack—designed specifically for intensive AI workloads—to support its large-scale model training and inference needs. Nebius plans to fund the required capital expenditures through a combination of cash flow generated by the contract and secured debt backed by the Microsoft commitment, leveraging the partner’s strong credit profile to secure favorable terms.
Nebius’s full-stack platform includes compute, storage, managed services, and development tools tuned for AI workloads. The company operates research and development centers across Europe, North America, and Israel, and also manages businesses Avride (autonomous driving) and TripleTen (tech reskilling). Nebius holds equity stakes in AI-focused firms such as ClickHouse and Toloka, further anchoring its position in the sector.
While the deal terms were undisclosed, sources with Reuters reported that it was valued at $17.4 billion over a five-year term. And Microsoft could buy additional services capacity, bringing the total value to about $19.4 billion.
KEY QUOTE:
“Nebius’s core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well. We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies. I’m happy to announce the first of these contracts, and I believe there are more to come. The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond.”
Arkady Volozh, founder and CEO of Nebius
