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Key Points
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Dutch tech company Nebius Group signed a five-year lease with Microsoft worth $19.4 billion for data center services.
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Nebius will build a new data center in Vineland, New Jersey, with leasing expected to start in 2025.
Nebius Group (NASDAQ: NBIS) announced a significant agreement with Microsoft on Tuesday, resulting in a stock surge of 40% by 9:45 a.m. ET. The deal, worth approximately $17.4 billion over five years, could reach up to $19.4 billion. Last year, Nebius reported $249 million in revenue, converting $243.5 million of that into profit, indicating a remarkable net profit margin of 97.7%.
The new data center is part of Nebius’s plan to provide dedicated GPU infrastructure to Microsoft in stages through 2031, financed by both revenues from this deal and additional debt. The financial commitment reflects a significant investment in future AI infrastructure capabilities.
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