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Nebius' Heavy CapEx Push: Can Customer Prepayments Ease the Strain?

Zacks Investment Research·
Nebius' Heavy CapEx Push: Can Customer Prepayments Ease the Strain?

Nebius Group is aggressively expanding its AI infrastructure capacity, reaffirming $20-25B capex guidance for 2026 and targeting 5 GW of contracted power by year-end. The company is leveraging customer prepayments (covering 50-60% of capex), operating cash flow, and asset-backed financing to fund its buildout. However, execution risks remain amid intense competition from CoreWeave and tech giants like Microsoft and Amazon.

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