Nebius plans $40 billion AI buildout as Microsoft data center delays raise financing questions

Nebius announced $40 billion in planned AI infrastructure spending for 2027, far exceeding Wall Street expectations, with financing dependent on customer prepayments and loans. The strategy faces risks as a Microsoft data center in New Jersey is months behind schedule, with only half of capacity now expected by year-end and the rest delayed to Q2 2027. The site faces regulatory fines and a lawsuit over unpermitted generators and noise. Nebius cut its 2026 revenue forecast by $200 million to $3 billion due to third-party delays, and shares fell 17%. The company ended the quarter with $7.4 billion in cash and reported Q3 revenue of $981 million.