Nvidia announced a $2 billion investment in Nebius Group (NASDAQ: NBIS) on March 11, 2023, aimed at accelerating the deployment of dedicated AI data centers. This funding comes as demand for AI-focused computing capacity in data centers is projected to exceed supply by 10 gigawatts (GW) over the next three years, according to Goldman Sachs. Nebius plans to increase its contracted data center capacity to 3 GW by the end of 2026.
The investment will enable Nebius to purchase more equipment to expand its data center capabilities, with expectations to achieve an active data center capacity of 800 megawatts (MW) to 1 GW by 2026. Analysts predict a 531% revenue surge for Nebius in 2026, forecasting $3.35 billion, driven by over $20 billion in orders from two major U.S. hyperscalers.
