Nebius outlines $40 billion spending plan amid project delays

During its third-quarter earnings call, Nebius revealed an ambitious $40 billion planned spending strategy for 2027, relying on customer pre-payments and loans backed by future contracts to fund data center construction. However, the strategy faces risks as key projects encounter setbacks, including delays at a major New Jersey data center tied to a $19.4 billion contract with Microsoft. The delays at the New Jersey facility stem from issues with third-party operator DataOne, which faced a $1.1 million fine from state regulators for operating unpermitted natural gas generators and is dealing with a noise-complaint lawsuit from local residents. These hurdles threaten to push deadlines past contractual windows and test the viability of Nebius's financing model as major clients like Microsoft tighten their oversight.