Nebius Raises Year-End Power Target to 5 Gigawatts
In August 2026, Nebius Group (NASDAQ:NBIS) raised its contracted power target for the end of the year from more than 4 gigawatts in May to 5 gigawatts. This marks a third increase within six months and reflects rapid scaling as the AI cloud provider secures electricity capacity faster than anticipated. The company's second-quarter revenue surged by 454% year-over-year, reaching $582.3 million, with its core AI business contributing nearly all of it. Annualized run-rate revenue hit $3 billion in June, up from $1.9 billion three months earlier. Nebius also reported a significant improvement in profitability, achieving an adjusted EBITDA margin of 50% for the quarter. Nebius has secured landmark deals with AI developers like Reflection and Cohere, averaging over $1 billion in total contract value. These contracts now yield higher annual revenue per megawatt compared to earlier agreements. However, converting contracted power into deployed data centers will take time, as Nebius plans to bring more than 1 gigawatt online annually starting in 2027.
