Data center developer Nebius Group (NASDAQ: NBIS) said on Wednesday that first-quarter revenue rose 684% year over year to $399.0 million and that it secured up to 1.2 GW of power and land in Pennsylvania for a new owned AI factory. The AI cloud company reported net income from continuing operations of $621.2 million, compared with a loss of $104.3 million a year earlier.
Shares of NBIS are up 19% in pre-market hours, per Yahoo Finance, after beating earning expectations. Earnings per share clocked in at -$0.40, beating expectations by 40%. Revenue beat expectations by 3%.
Nebius’s core AI cloud unit generated $389.7 million in Q1 revenue, up 841% year over year, and accounted for about 98% of total group revenue. Annualized run-rate revenue reached $1.92 billion at the end of March, up 674% year over year and 54% from $1.25 billion at the end of December 2025.
The Q1 net income figure included a $780.6 million non-cash gain from the revaluation of Nebius’s equity stake in ClickHouse, the open-source database company that raised $400 million at a reported $15 billion valuation in January 2026. Adjusted EBITDA swung to $129.5 million from a loss of $53.7 million in the prior-year quarter, while the company posted an operating loss of $128.0 million.
Cash from operating activities was $2.258 billion in Q1, driven in part by a $3.198 billion increase in deferred revenue from customer prepayments. Capital expenditures totaled about $2.5 billion, directed at GPU hardware purchases and data center expansion. Nebius raised $6.3 billion in the quarter, including a $2 billion equity investment from NVIDIA and $4.3 billion from convertible notes, and ended March with $9.3 billion in cash and cash equivalents.
Pennsylvania expansion
The Pennsylvania site is Nebius’s second gigawatt-scale location in the U.S., alongside a 1.2 GW AI factory in Independence, Missouri, where the company broke ground on Tuesday. The Pennsylvania facility will be delivered in phases beginning in 2027, according to a shareholder letter from founder and CEO Arkady Volozh.
“We have now secured two gigawatt-scale sites in the US,” Volozh said in the letter. “We broke ground at our Missouri location yesterday; today, we are announcing a new site in Pennsylvania where we have secured power for a deployment of up to 1.2 GW.”
Contracted power now exceeds 3.5 GW, with owned capacity representing more than 75% of the total. Nebius raised its year-end contracted power guidance to more than 4 GW, up from its prior target of 3 GW. Connected power, a separate measure reflecting fully built and equipped data centers, is expected to reach 800 MW to 1 GW by year-end.
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