AMSTERDAM – Nebius Group N.V. (NASDAQ: NBIS), an AI infrastructure company valued at $6.98 billion, has announced its plans to significantly enhance its cloud computing capabilities in the United States with a new data center in New Jersey, designed to support up to 300 megawatts (MW) of capacity. According to InvestingPro data, analysts expect substantial sales growth for the company in the current year, supporting its ambitious expansion strategy. The construction of the New Jersey facility is expected to commence soon, with the initial phase slated for completion by summer 2025. Arkady Volozh, the CEO of Nebius, stated that the new data center aligns with the company’s strategic objectives to expand its American market presence and establish itself as a global leader in AI infrastructure.. The New Jersey site is intended to allow large-scale dedicated instances and flexible deployment acceleration to meet customer demand.
This announcement is part of Nebius’s broader expansion strategy, which includes additional capacity at its existing Kansas City location and a new site in Iceland. The Kansas City facility is set for a second deployment phase by the end of Q2 2025, while the first phase remains on track for Q1 2025 completion. The Iceland site, located in Keflavik, is currently undergoing physical deployment and software installation, with operations expected to be fully functional by the end of Q1 2025. This location will leverage Iceland’s geothermal energy, reflecting Nebius’s commitment to environmental sustainability. These developments, alongside the tripling of capacity at Nebius’s Finnish data center and other potential new sites, are expected to substantially increase the company’s installed capacity across the US and Europe throughout 2025. While InvestingPro analysis indicates the company is not yet profitable, with a projected EPS of -$1.30 for 2025, its strong balance sheet shows more cash than debt and a healthy current ratio of 9.64, providing financial flexibility for its expansion plans.
Nebius, headquartered in Amsterdam with a listing on Nasdaq, specializes in full-stack infrastructure for the growing global AI industry. The company’s AI-centric cloud platform is built for intensive AI workloads and is part of the NVIDIA (NASDAQ: NVDA) Partner Network as a preferred cloud service provider. Nebius’s in-house designed hardware and proprietary cloud software architecture aim to provide AI developers with the necessary resources for their projects.
This expansion underscores Nebius’s aggressive growth strategy and its commitment to supporting the AI industry’s infrastructure needs. The information about Nebius’s expansion plans is based on a press release statement. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and detailed financial metrics in its Pro Research Report, one of 1,400+ available for top US stocks. In other recent news, Nebius Group reported its Q4 2024 earnings, revealing ambitious growth plans in the AI infrastructure market. The company ended the year with a cash reserve of $2.4 billion, bolstered by a $700 million raise in the fourth quarter. Despite challenges such as longer deal lead times, Nebius projects an annualized run rate (ARR) of $220 million by March 2025 and aims for $750 million to $1 billion by December 2025. Revenue guidance for 2025 is set between $500 million and $700 million, with expectations for EBITDA to approach breakeven during the year.DA Davidson recently initiated coverage on Nebius Group with a Buy rating and a $50 price target, highlighting the company’s technological potential and market opportunities. This coverage diverges from conventional analysis by focusing on early-stage ventures and technological aspects. The firm sees a promising future for Nebius Group, given its innovative technology and market opportunities.
