Nebius Turns Power Scarcity into Strategic Advantage with $2.6 Billion Bloom Energy Tie-Up

Nebius partners with Bloom Energy for $2.6B fuel cell deal to bypass grid delays, boosting AI infrastructure capacity to 4 GW amid soaring revenue and heavy losses.

The race to build AI infrastructure has a new gatekeeper: access to electricity. Nebius is sidestepping that bottleneck with a decade-long deal that essentially turns its data centres into self-powered islands. The stock leapt more than 15% on Thursday as investors digested a contract with Bloom Energy that could be worth up to $2.6 billion in service fees.

Bloom will install and maintain solid-oxide fuel cells directly at Nebius sites, beginning with a 328-megawatt project in Independence, Missouri, scheduled for 2026. The guaranteed capacity from that initial deployment is roughly 250 megawatts. The arrangement replaces an earlier plan to use conventional gas turbines, cutting emissions and, more critically, eliminating the delays tied to grid connection approvals.

Nebius has already raised its year-end target for contracted power capacity from 3 gigawatts to 4 gigawatts, signalling that the Bloom partnership is not just a backup plan but a core pillar of its expansion strategy.

Revenue Explosion Masks Ongoing Losses

The company’s first-quarter numbers explain why the energy scramble matters so much. Sales hit $399 million, a 684% surge from a year earlier. The AI cloud segment alone generated $389.7 million, an eye-popping 841% jump. Annualised recurring revenue reached $1.92 billion, up 674%, reflecting how quickly Nebius is locking in long-term customer commitments.

Yet the bottom line remains in the red. Adjusted net loss stood at $100.3 million, or $0.33 per share. That is where the cash pile of roughly $3.7 billion buys breathing room.

To sustain the growth trajectory, management is ramping up capital expenditure by $4.5 billion this financial year. The extra spending will feed directly into servicing active contracts with hyperscalers such as Nvidia, Microsoft and Meta.

Analyst Targets Span a Wide Range

The investment case splits analysts into two camps. Those focused on the top-line momentum see a clear path to further upside, while others flag the enormous capital demands and execution risks.

• Citigroup rates the stock a “Buy” with a $287 target.
• Northland sets a $248 price target.
• D.A. Davidson is “Neutral” at $250.
• Morgan Stanley sits at “Equal-Weight” with a $144 target.

The consensus average target clocks in at $221.71, a level that leaves room for debate on whether the Bloom deal really changes the valuation equation.

Forward Guidance and a Backlog to Watch

For 2026, Nebius expects revenue between $3.0 billion and $3.4 billion, while its annualised recurring revenue target for year-end ranges from $7 billion to $9 billion. The order book already stands at $33.6 billion, anchored by a single $27 billion contract with Meta and a $2 billion strategic investment from Nvidia.

Unconfirmed market chatter points to potential GPU price increases effective June 1, 2026 — on-demand rates could climb roughly 29% and spot capacity as much as 51%. Nebius has not officially confirmed those adjustments, but they would add further fuel to the revenue trajectory if implemented.

The Bloom Energy deal removes one major obstacle, but the real test lies ahead: delivering the Missouri project on time, keeping the chip pipeline filled, and converting the massive backlog into cash. Thursday’s rally suggests the market is giving Nebius the benefit of the doubt — for now.