Nebius Accelerates AI Cloud Growth with US and European Expansion
AI cloud infrastructure provider Nebius is expanding its U.S. footprint with its first major datacenter in New Jersey, a facility designed to scale up to 300 MW of capacity. The Amsterdam-based company, which specializes in AI-optimized cloud computing, is making an aggressive push into the U.S. market, putting it in competition with other hyperscalers catering to the AI boom.
The company is also ramping up capacity in its Kansas City colocation and adding a geothermal-powered deployment in Iceland, reflecting a broader industry shift toward specialized AI cloud services and sustainable compute solutions.
Nebius’s new datacenter in Vineland, New Jersey will be built using the company’s own design, aiming to maximize efficiency and performance for AI workloads. The facility will be developed in phases, with an initial capacity set to go online as early as summer 2025. It is expected to reach 100 MW by the end of the year, with the potential to expand up to 300 MW to meet growing demand.
Nebius CEO Arkady Volozh said the new U.S. datacenter is a key step in the company’s strategy to expand its presence in the American market and establish itself as a global leader in AI infrastructure. According to Volozh, the facility will support dedicated large-scale instances, and the company has the flexibility to accelerate deployment as demand increases.
(Source: Nebius)
“With New Jersey, we now have secured expansion capacity to over 400 MW. And we are actively reviewing options to extend this pipeline further as we seek to grow aggressively to multiples of where we are today,” he said in a statement.
In Kansas City, Nebius has agreed to a second deployment phase, with the additional capacity expected to be online by the end of Q2 2025, according to a release. Delivery of the first phase at Kansas City remains on track for Q1 2025, the company said.
Beyond its U.S. expansion, Nebius is also scaling up its AI infrastructure in Europe. The company has launched a new colocation deployment in Keflavik, Iceland, leveraging the region’s geothermal energy to minimize environmental impact. This site is expected to be fully operational by the end of Q1 2025. Additionally, Nebius is tripling capacity at its first datacenter in Finland and exploring further European expansion, reinforcing its broader strategy to grow its AI cloud footprint across both continents.
Nebius was formed last year after Russian tech giant Yandex divested its European operations, a move that came amid heightened geopolitical tensions following Russia’s invasion of Ukraine. The newly independent firm, headquartered in Amsterdam, took control of Yandex’s Finnish datacenter and AI-related businesses.
Nebius offers a full-stack platform designed for intensive AI workloads, with proprietary software and in-house hardware development. The company is also a preferred cloud service provider in the Nvidia Partner Network.
