shares Nebis Group (NASDAQ: NBIS ) It rose on March 11 after the news broke Nvidia (NASDAQ: NVDA ) plans to invest $2 billion in infrastructure provider NuCloud to help accelerate the creation of the latest dedicated artificial intelligence (AI) data center infrastructure.
Nebius stock has risen impressively over the past year, driven by the company’s growing revenue as it plays a key role in the AI infrastructure ecosystem. It builds dedicated AI data centers equipped with Nvidia chip systems and then rents the capacity to customers for a fee. Importantly, Nebius’ full-stack AI infrastructure platform also gives users access to management software services, which explains why its platform is in such high demand.
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Let’s see what Nvidia’s latest investment means for Nebis.
The demand for AI-centric computing capacity in data centers exceeds the supply. Goldman Sachs It is estimated that data center demand will exceed existing supply by an average of 10 gigawatts (GW) over the next three years. Nabius is trying hard to fill this gap.
It added 170 megawatts (MW) of data center capacity by 2025, well ahead of its 100 MW target. What’s more, Nebius expects to end 2026 with an active data center capacity of 800 MW to 1 GW. Importantly, the company aims to increase its contracted data center capacity, which refers to the amount of electricity it secures from utility companies to power new data centers, to 3 GW by the end of 2026.
Nvidia’s funding will enable Nebius to purchase more equipment to power additional data centers. Even better, Nvidia points out that Nebius will have early access to the next generation of its Vera Rubin AI chips, which are expected to have significantly lower costs. Nvidia said it will also help Nebius bring more than 5 GW of data centers into operation by 2030.
This will be a significant increase in the operational capacity of Nebis by the end of 2025.
Analysts expect a 531% increase in Nebius’ revenue to $3.35 billion in 2026. Importantly, the forecast for the next few years is very strong.
However, a recent boost in funding from Nvidia could help Nibius meet analysts’ expectations. That’s because it can now accelerate data center deployments, which will allow it to turn its backlog into revenue at a faster pace.
