Microsoft Partners with Nebius for AI Data Center Expansion in New Jersey

Microsoft has entered a multi-year agreement with Nebius Group N.V., an Amsterdam-based AI infrastructure provider, to expand its artificial intelligence data center capacity in the United States. The deal will leverage Nebius' newly constructed facility in Vineland, New Jersey, set to commence operations later this year.

The collaboration underscores a strategic shift among hyperscalers like Microsoft, who are increasingly outsourcing AI computing needs to specialized firms rather than solely building in-house capacity. Nebius plans to finance the expansion through Microsoft-backed cash FLOW and debt, showcasing innovative financing models for AI infrastructure.

With AI infrastructure spending projected to exceed $200 billion by 2028, such partnerships highlight the growing demand for scalable solutions. Nebius aims to reach 1 GW of power capacity by 2026, addressing critical energy bottlenecks while fueling its global expansion ambitions.