Nebius wins Missouri approval for 1.2 GW AI computing facility
Independence campus will create 1,200 jobs and receive $650M in local incentives, marking largest US expansion for AI cloud provider
Nebius Group has secured approval to build its first gigawatt-scale artificial intelligence computing campus in the United States, a $650 million project that will create 1,200 jobs and significantly expand the company's capacity to compete in the rapidly growing AI cloud market.
The Independence City Council approved Nebius's plans for a 1.2 gigawatt AI factory on a 400-acre site in Missouri, marking the Amsterdam-based company's largest infrastructure project to date. The facility will generate approximately 1,200 construction jobs and 130 permanent high-tech positions upon completion, according to regulatory filings and company announcements.
"We are advancing our U.S. expansion after securing local approval for a major AI infrastructure project," Nebius stated, noting that demand in its AI cloud business "exceeded capacity, and the platform operated at peak utilization during the quarter."
The approval represents a significant milestone for Nebius, formerly known as Yandex N.V., which has pivoted to become a full-stack AI cloud provider specializing in high-performance computing infrastructure. The company's shares have experienced notable volatility in 2026, trading at $90.87 as of March 4, down from a 52-week high of $141.10 but up dramatically from its low of $18.31.
Under terms of the agreement, Nebius will contribute more than $650 million to the city and local school districts over 20 years through Payments in Lieu of Taxes (PILOT). The facility will connect directly to Independence Power & Light, ensuring no increase in residential power rates for local residents, according to the company's announcement.
The Missouri campus is a critical component of Nebius's ambitious expansion strategy, which targets 2.5 to 3 gigawatts of contracted power capacity by the end of 2026. The company has already achieved 2 gigawatts of capacity as of February 2026 and aims to build and connect 800 megawatts to 1 gigawatt of data center power by year-end. Management has reiterated its goal of reaching $7 billion to $9 billion in annualized run-rate revenue by the end of 2026.
Nebius's expansion comes amid fierce competition in the AI infrastructure market, which is projected to reach $101.17 billion in 2026 and grow to $202.48 billion by 2031, representing a compound annual growth rate of 14.89%, according to market research. The company primarily competes with CoreWeave, another specialized AI cloud provider that has achieved faster scale but carries significantly more debt.
While CoreWeave boasts $5 billion in annual revenue and a $66 billion contract backlog, Nebius maintains advantages in its debt-to-cash position and expects to achieve profitability by the end of 2026, according to analyst research. Nebius also offers competitive pricing, reportedly 30-40% lower for large, long-term AI projects, and provides a full-stack offering including pre-assembled NVIDIA clusters and management software.
The company has secured substantial contracts to support its growth trajectory, including up to $19.4 billion over five years with Microsoft and $3 billion with Meta, according to company filings and analyst reports. These agreements provide visibility for Nebius's aggressive capital expenditure plans, which total $16-20 billion for 2026.
Analysts maintain a positive outlook on Nebius despite concerns about high capital spending and negative cash flow in the near term. Approximately 29 analysts cover the stock with a consensus "Buy" rating and an average price target of $143.22, according to MarketScreener data. Recent initiations include Freedom Capital with a Buy rating and $108 price target, and Compass Point with a Buy rating and $150 price target.
The Independence facility will incorporate advanced environmental features, including a closed-loop cooling system to minimize water usage and noise-reduction technology, addressing growing concerns about the environmental impact of large-scale data centers. The company has emphasized that its U.S. expansion is part of a broader strategy to diversify geographically, with existing operations in Europe and the Middle East.
Nebius's market capitalization stands at approximately $21.85 billion with a price-to-earnings ratio of 226.45, reflecting investor expectations for rapid growth in the AI infrastructure sector. The company's strategic partnerships with chipmaker NVIDIA, Cloudflare, and Shopify provide additional competitive advantages as it scales its operations, according to company disclosures.
The Missouri project represents a significant step in Nebius's transformation from a Russian internet company to a global AI infrastructure provider, positioning it to capture a share of the booming demand for specialized computing resources needed to train and deploy large language models and other AI applications.