Nebius Group announced the construction of a 240‑megawatt data‑center in Béthune, near Lille, France. The facility will be one of Europe’s largest AI‑cloud data centers and is expected to be online in phases, with half of the site operational by the end of 2026 and the full capacity online by late summer 2026.
The expansion comes on the back of a strong Q4 2025 earnings report that saw revenue rise to $227.7 million, a 547% year‑over‑year increase from $35.2 million in Q4 2024. Despite the revenue growth, the company missed its $232.19 million estimate, a shortfall of $4.49 million or 1.9%. Net loss widened to $249.6 million, and capital expenditures surged to $2.06 billion, a 392% jump from the prior year. Adjusted EBITDA turned positive at $15.0 million, with a core AI‑cloud margin of 24% versus 19% in Q3 2025.
Nebius’s strategy to meet surging AI demand is underscored by the new French site, which will serve hyperscale customers such as Microsoft and Meta. Deliveries to Microsoft began in November 2025, with remaining capacity scheduled for 2026, while Meta’s capacity was fully deployed by early February 2026. The company’s CEO Arkady Volozh said, "We enter 2026 with strong momentum, high operational confidence, and a scalable platform built for the world's most demanding AI workloads. We are on track to end the year with ARR1 of $7 billion to $9 billion. To achieve this we will focus on four key strategic areas: scaling capacity with discipline; executing on our customer commitments; advancing our AI Cloud platform; and raising capital strategically."
Guidance for 2026 reflects confidence in continued demand. Nebius projects revenue between $3 billion and $3.4 billion, and ARR between $7 billion and $9 billion. Adjusted EBITDA margin is expected to reach roughly 40%. Capital expenditures are forecast at $16 billion to $20 billion, with the CFO Dado Alonso noting, "The majority of our CapEx guidance (60% or more) will be financed by the cash we've received and will continue to receive in 2026 from the favorable terms of our long‑term contracts. We're talking about significant amounts of cash." The company will also shift its depreciation schedule from four to five years starting in Q1 2026 to align with market practice.
Market reaction to the earnings report was muted, with investors focusing on the revenue miss and widening net loss. The company’s strong ARR beat and positive EBITDA were offset by the top‑line shortfall and the scale of its capital outlay, which raised concerns about near‑term profitability. Nonetheless, the guidance signals a robust growth trajectory and a disciplined approach to financing expansion.
Overall, the 240‑MW expansion in France positions Nebius to capture a larger share of the AI‑cloud market, supports its key hyperscale customers, and aligns with its long‑term revenue and margin objectives. The company’s financials show rapid growth but also significant investment, underscoring the trade‑off between scaling capacity and managing profitability in a capital‑intensive industry.
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