Core Insights - Nebius, a Netherlands-based data centre operator, is leveraging significant contracts with Microsoft and Meta to expand its business with traditional firms and emerging AI companies [1][2] - The company has seen its stock price increase by 248% this year, with a market capitalization exceeding $25 billion, driven by a $17 billion deal with Microsoft and a $3 billion partnership with Meta [2] - Nebius aims to prepare for potential market downturns by focusing on high-margin services and establishing long-term client relationships [3][4] Company Strategy - Nebius is positioning itself as a consolidator in the data centre market, anticipating challenges during technological revolutions [4] - The company is targeting legacy enterprises across various sectors, including manufacturing, retail, and banking, with a particular focus on pharmaceutical firms and hedge funds [5] - Nebius prioritizes margins over revenue in its negotiations with hyperscalers, indicating a strategic approach to financing its operations [8] Market Position - Nebius is recognized as Europe's largest 'neocloud' firm, providing access to essential graphics processing units (GPUs) for AI applications [5][6] - The company has a significant presence in the U.S. market, with plans to secure 2.5 gigawatts of contracted power by the end of 2026 to meet customer demand [7] - Capacity sold to European neocloud providers increased by 211% to 414 megawatts in the first nine months of 2025 compared to the previous year, highlighting strong growth in the sector [7]