Nebius Group N.V. NBIS is doubling down on its infrastructure expansion plans with the building of an AI factory with a capacity of up to 310 MW in Finland. Share price shot up 12.5% yesterday following the announcement.
This factory will be set up in the city of Lappeenranta and will become “one of Europe’s largest dedicated AI factories” once fully operational, highlighted Nebius. The first capacity is expected to be available in 2027.
The Lappeenranta project marks a significant step toward Nebius’ broader goal of securing more than 3 gigawatts of contracted power globally by 2026.
Nebius has already achieved 750 MW of contracted power in EMEA. The company is also advancing parallel projects in the region, including a 240-MW AI factory near Lille, France. NBIS plans to build more facilities in Finland as it aggressively expands capacity. Last month, Nebius secured approval to build its first gigawatt-scale AI factory in Kansas City, MO.
Nebius Group N.V. Price and Consensus
Nebius Group N.V. price-consensus-chart | Nebius Group N.V. Quote
This is NBIS’ second venture in Finland this year, following the establishment of a data center in Mäntsälä, up to 75 MW, earlier in the year. That facility already hosts “Europe’s first operational deployment” of NVIDIA’s GB300 NVL72 platform, with plans to introduce next-generation NVIDIA Vera Rubin NVL72 systems later this year, added NBIS.
NBIS’ AI factory deployments with the latest Blackwell and Rubin generations of NVIDIA position it to support advanced AI training and inference workloads. These facilities, including the Lappeenranta project, stand out as a key growth catalyst in its long-term strategy.
Having secured more than 2 GW of contracted power, Nebius plans to surpass 3 GW and remains on track to deliver 800 MW to 1 GW of data center capacity by the end of 2026. For 2026, the company expects revenues of $3 billion to $3.4 billion, with an annualized run-rate revenue target of $7 billion to $9 billion by year-end.
However, Nebius needs to watch out for intense competition in the AI infrastructure space from tech behemoths such as Amazon AMZN, Microsoft, Alphabet and pure plays like CoreWeave CRWV.
Capacity Plans of Competitors
CoreWeave is also ramping up capacity expansion as demand surges. It ended 2025 with more than 850 MW of active power across 43 data centers, after adding 260 MW in the fourth quarter. It also contracted nearly 2 GW of additional power in 2025, bringing total contracted capacity to more than 3.1 GW. Most of this capacity is expected to come online by 2027. Management stated that it aims to add more than 5 GW of additional data center capacity by 2030.
For 2026, the company expects capital expenditures of $30 billion to $35 billion and plans to double active power capacity to more than 1.7 GW.
Amazon is one of the structurally dominant forces in the tech space. The company added 1 GW of capacity in the fourth quarter of 2025 and 3.9 GW over the past 12 months. It expects to double the overall capacity by 2027. On the last earnings call, management noted that the company was adding “significant” EC2 core computing capacity daily, powered by its custom silicon, including Graviton CPUs.
To support this growth, Amazon plans to invest approximately $200 billion in capital expenditures, with the majority directed toward AWS infrastructure. These heightened capex commitments are likely to keep investors on alert.
NBIS Price Performance, Valuation and Estimates
Shares of Nebius have gained 14% in the past month against the Internet – Software and Services industry’s decline of 1.5%.
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On a price-to-book basis, NBIS’ shares are trading at 5.66X, above the Internet Software Services industry’s 3.15X.
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The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised downwards over the past 60 days.
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NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).