Will Nebius' 1 GW Capacity Target by 2026 Accelerate Revenue Growth?

Core Insights - Nebius Group N.V. (NBIS) aims to secure 1 gigawatt (GW) of capacity by 2026, targeting "mid-single digit billions of dollars in revenues" in the mid-term [1][4] - The company plans to achieve 220 megawatts (MW) of connected power by 2025, including 100 MW of active power, with new data centers in the UK, Israel, New Jersey, and capacity expansion in Finland [2][11] - Nebius has raised its 2025 annualized run rate (ARR) guidance to $900 million to $1.1 billion, up from $750 million to $1 billion, citing accelerating AI demand [4][11] Capacity Expansion - The 1 GW capacity target positions Nebius to benefit from increasing demand for AI compute, with an annualized run rate (ARR) increasing from $249 million in March to $430 million in June [3] - The company is focusing on greenfield development due to lower total cost of ownership, which is nearly 20% below the market average [2] Competitive Landscape - Intense competition exists in the AI infrastructure space, with other players also expanding capacity to capture demand [5] - CoreWeave (CRWV) is ramping up capacity aggressively, targeting over 900 MW of active power by year-end and raising its 2025 revenue guidance to $5.15-$5.35 billion [6][7] Market Positioning - Microsoft (MSFT) is a dominant player in the tech space, rapidly expanding its Azure platform for AI workloads, having added over 2 GW of new datacenter capacity in the past year [8][9] - Nebius shares have gained 161.9% year to date, outperforming the Internet – Software and Services industry's growth of 26.2% [10]