Nebius Shares Surge as Q2 Revenue Jumps 454% on AI Demand

Nebius, an AI infrastructure provider in which Nvidia holds a stake, is seeking to expand a large data center in New Jersey as demand for computing capacity accelerates with generative AI. The project matters because data-center growth depends not only on capital and chips, but also on access to power, water and cooling, along with local approvals. Any setback could constrain Nebius’ expansion timetable and its ability to bring new capacity online for customers.

The expansion plan has drawn strong opposition from local residents, who have raised concerns about limited transparency, water consumption and noise. Investors fear the backlash could complicate the review process and delay construction or the start of operations. Those concerns hit the shares on the day of the report, sending Nebius down more than 13% as the market reassessed the execution risks surrounding the New Jersey project.

Amsterdam-based Nebius Group, spun out of Yandex, is part of a new generation of “neocloud” providers building GPU-heavy infrastructure for artificial intelligence workloads. Demand for model training and inference has accelerated investment in data centers and computing capacity. Nvidia deepened its relationship with the company on March 11 by committing $2 billion, transforming a supplier-customer tie into a broader strategic and financial partnership.

Nvidia disclosed to the US Securities and Exchange Commission on July 20 that it beneficially owned about 22.26 million Nebius shares, representing a 9.3% passive stake. Nebius rose 4.3% to $185.35 in regular trading before gaining as much as 5.68% after hours. IREN surged 19.57% after announcing $2.8 billion of new cloud contracts, while Hut 8 climbed 9.73% following a 15-year, $9.8 billion lease for its Texas data-center campus.