Understanding the Rapid Growth of Nebius ($NBIS) in the USA

The demand for computing power is surging at an unprecedented rate, and Nebius ($NBIS) is at the forefront of this technological revolution. With their innovative approach to data centers and cloud services, this company is making waves across the USA and beyond. In this blog, we’ll explore how Nebius is positioning itself as a leader in the AI and machine learning sectors and the exciting growth trajectory it’s on. 🚀

1. Rapid Expansion of Nebius

Nebius is on a remarkable trajectory, establishing data centers in Finland and France, and creating a dedicated cloud platform to support AI and machine learning applications. Their current power generation capacity stands at an impressive 25 megawatts, with a bold target of reaching 1 gigawatt by 2026. This kind of growth indicates a firm that understands current market demands and is ready to meet them head-on!

2. Two Layers of Business: Infrastructure and Services

People often overlook Nebius due to a lack of understanding of its business model. The company operates on two main levels: hardware infrastructure and cloud services. Their competitive edge lies in controlling the entire value chain—from servers to edge cloud applications. This integration not only enhances efficiency but decreases dependency on external suppliers. 📊

3. Designing Their Own Servers

Nebius has chosen to design its own servers, reaping numerous benefits:

• Bypassing OEM markup costs.
• Improving energy efficiency by 20%.
• Optimizing specifically for Nvidia GPUs with integrated infinite bandwidth.

This strategic design significantly lowers Nebius’s total cost of ownership, setting it apart in a competitive landscape. 💻

4. Building Their Own Data Centers

The company takes pride in establishing its own data centers. With two facilities located in Europe and hosting engagements worldwide, Nebius is strategic about the locations they choose. Their Finnish data center, for example, is regarded as one of the most efficient globally, leveraging natural air cooling techniques. 🌍

5. End-to-End Control Equals Enhanced Efficiency

Following tech giants Google and Microsoft, Nebius now boasts one of the most energy-efficient clusters available. This efficiency translates into affordability for clients, as they can secure GPU (H100) usage for just $1.50 per hour—significantly lower than competitors like AWS and GCP, which charge $3 for the same service. 💵

6. Soaring Demand and Impressive Revenue Growth

The demand for Nebius’s services is skyrocketing, with the company experiencing year-on-year revenue growth in the triple digits. In just the last quarter, Nebius reported earnings of $55 million, skyrocketing to a projected $110 million in Q1 2024. This remarkable performance has elevated their annual recurring revenue (ARR) to $220 million, with expectations reaching at least $750 million this year! 📈

7. This is Just the Beginning

Nebius is not resting on its laurels; they’re making substantial investments into new clusters. Currently, they have two major expansion plans underway:

• Adding 300 megawatts of capacity in the USA.
• Tripling the capacity of their Finnish data center.

By the summer of 2026, these initiatives alone will dramatically increase their capacity by an additional 325 megawatts. 🚀

Conclusion

As we continue to witness the evolution of data centers and cloud services, Nebius stands out as a beacon of innovation and growth. With their strategic approach to technology, efficiency, and expansion, Nebius is well-prepared to lead the charge in the burgeoning fields of AI and machine learning. For investors and tech enthusiasts alike, the future looks bright for this fast-growing company! ☀️