Nebius Approved to Build Largest AI Data Center in the U.S.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy NBIS?
Source: seekingalpha
- Project Scale Innovation: Nebius has received approval to build its largest AI data center in Independence, Missouri, with a capacity of up to 1.2 GW, marking a significant expansion in the AI infrastructure sector and expected to enhance its market competitiveness.
- Sustainable Design: The data center will feature a closed-loop cooling system that keeps water consumption comparable to that of a restaurant or office building, along with built-in noise reduction technology, reflecting Nebius's commitment to sustainability and helping to enhance its corporate image while meeting increasingly stringent environmental regulations.
- Regional Development Impact: The multi-building campus will span approximately 400 acres, expected to bring economic growth and job opportunities to Independence, further solidifying Nebius's strategic position in the U.S. market.
- Global Expansion Plans: Nebius is also constructing a 300 MW data center in Vineland, New Jersey, with plans for additional sites in Minnesota, Oklahoma, and Alabama, aiming to establish 16 global data center locations by the end of 2026.
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Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 89.330
Low
130.00
Averages
164.20
High
211.00
Current: 89.330
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Customer Dependency Analysis: CoreWeave is projected to derive 67% of its revenue from a single major customer in 2025, widely believed to be Microsoft, indicating a stable customer base and potential for sustained growth.
- Revenue Growth Expectations: Analysts forecast Nebius's revenue to grow by 532% and 181% in 2026 and 2027, respectively, while CoreWeave is expected to grow at 142% and 85%, highlighting the fierce competition in AI infrastructure development.
- Profitability Comparison: Although neither company is currently profitable, CoreWeave's operating margin suggests it is closer to breakeven, and its lower relative valuation indicates a more attractive value proposition in the market.
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See More
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Nebius Group's AI Factory: Nebius Group has secured approval to build a massive AI factory in Missouri, which will serve as a hub for AI innovation and is expected to create over 1,300 local jobs.
Power Capacity and Infrastructure: The facility will have a power capacity of up to 1.2 gigawatts, positioning Nebius as a key player in the AI infrastructure market, crucial for meeting the growing demand for AI computing power.
Strategic Transformation: The company is transitioning from a diversified tech conglomerate to a focused AI infrastructure provider, emphasizing its commitment to capturing significant market opportunities in the AI sector.
Financial Growth Projections: Nebius aims for an annual revenue run rate of $7 billion to $9 billion by the end of 2026, supported by a well-structured funding strategy and secured customer demand, indicating strong potential for financial growth.
See More
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See More
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- Stock Surge: Nebius Group's stock surged as much as 10.3% today, with a 9.9% increase still noted at 11:37 a.m. ET, indicating strong market optimism regarding the company's future developments.
- Factory Approval: The company announced it received approval from the City Council of Independence, Missouri, to begin construction on its largest gigawatt-scale AI factory, which will significantly enhance its capabilities in AI processing services.
- Significant Revenue Growth: Nebius reported a revenue of $530 million in 2025, marking a 479% increase, although the company remains unprofitable with an adjusted loss of $447 million, highlighting the financial challenges amid rapid expansion.
- High-Risk Investment: Despite showing strong growth potential, Nebius has a market cap of $22 billion and a price-to-sales ratio of 41, suggesting that investors should approach this high-risk stock with caution, making it suitable for those with a high-risk tolerance as part of a balanced portfolio.
See More
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- Stock Sale Announcement: SEC Director Ryan Charles intends to sell 35,333 shares of its common stock on March 5.
- Market Value: The total market value of the shares to be sold is approximately $3.07 million.
See More
