On February 12, 2026, Nebius, a rising star in the artificial intelligence infrastructure world, announced plans to build a colossal AI factory in Birmingham. The move, which represents a multibillion-dollar investment, signals both the company’s growing ambitions and Birmingham’s emergence as a new hub for advanced technology. In a candid discussion with the Birmingham Business Journal, a top Nebius executive detailed the company’s vision for this state-of-the-art facility, which is expected to supercharge the region’s tech sector and create a ripple effect across the broader AI industry.
For Nebius, the Birmingham project is just one piece of a much larger puzzle. According to Reuters, the company reported a sharp rise in its quarterly capital spending, driven by massive purchases of artificial intelligence processors and a relentless push to expand its data center footprint. These investments are not only about keeping up with the competition—they’re about staying ahead in a field where demand for AI cloud capacity continues to skyrocket.
“Demand from enterprises and AI native customers continues to outpace supply, allowing us to sell future capacity well in advance,” Nebius CEO Arkady Volozh wrote in a recent letter to shareholders, as reported by Reuters. “We are very focused on investing resources to continue expanding our capabilities in 2026 both organically and through targeted acquisitions.”
The numbers behind Nebius’s expansion are staggering. In the December quarter of 2025, the company’s capital expenditures soared to approximately $2.1 billion, up dramatically from $416 million in the same period a year earlier. This aggressive spending spree has already paid dividends: Nebius has secured more than 2 gigawatts (GW) of contracted power as of early 2026, outpacing its own projections. The company now expects to surpass 3 GW of contracted power by the end of the year, a significant jump from its earlier outlook of over 2.5 GW.
Such capacity is crucial for a company whose core business involves providing Nvidia processors and AI cloud infrastructure to other tech firms. Alongside larger rival CoreWeave, Nebius is part of a new generation of so-called “neocloud” companies—firms that supply the hardware and cloud services powering today’s AI revolution. The sector has witnessed relentless enterprise spending on AI over the past several years, with Nebius’s own shares surging more than 200% last year. However, the market remains volatile: while shares soared in 2025, they were down about 2% in early U.S. trading on the day of the announcement, according to Reuters.
Financially, Nebius’s story is one of both explosive growth and mounting challenges. The company reported a more than six-fold surge in revenue, reaching $227.7 million for the fourth quarter of 2025. Despite this impressive leap, the figure fell short of analyst estimates, which had pegged expected revenue at $246.1 million, based on data compiled by LSEG. Meanwhile, the company’s net loss widened to $249.6 million in the fourth quarter, up from $133.2 million a year earlier. These figures underscore the high-stakes nature of the AI infrastructure race—where vast upfront investments are often necessary to secure future dominance.
Still, Nebius is betting big on the future. The company projects that by the end of 2026, it will achieve an annualized revenue run-rate between $7 billion and $9 billion, a dramatic leap from the $1.25 billion it reported at the close of 2025. This optimistic outlook hinges on continued enterprise demand for AI capacity—demand that, so far, shows no signs of abating.
The decision to build an AI factory in Birmingham is emblematic of Nebius’s broader strategy. The city, long known for its industrial roots, is now positioning itself as a player in the knowledge economy. Local officials and business leaders have welcomed the investment, seeing it as a catalyst for job creation, skills development, and innovation. The facility is expected to draw on Birmingham’s growing tech talent pool, foster partnerships with local universities, and attract ancillary businesses eager to tap into the AI supply chain.
For the Birmingham community, the arrival of Nebius is more than just another corporate announcement. It represents a vote of confidence in the city’s potential to compete on the global stage. As the AI sector continues to evolve, regions that can offer a mix of infrastructure, talent, and forward-thinking leadership are poised to reap the rewards.
Of course, the road ahead is not without obstacles. The AI infrastructure race is notoriously capital-intensive, with companies like Nebius and CoreWeave pouring billions into hardware, data centers, and power contracts. The risk is that, in the rush to scale, firms may outpace their ability to generate sustainable profits. Nebius’s widening net loss in the fourth quarter of 2025 is a stark reminder of the delicate balance between growth and financial discipline.
Yet, for Nebius, the calculus appears clear. With demand for AI computing power continuing to surge, the company is intent on securing its place at the forefront of the industry. The Birmingham AI factory, with its promise of cutting-edge technology and economic revitalization, is a bold step in that direction.
Industry analysts are watching closely. The AI cloud infrastructure market is still in its early innings, and today’s investments could determine tomorrow’s leaders. As more enterprises shift their workloads to the cloud and integrate advanced AI tools, the need for robust, scalable infrastructure will only intensify. Companies that can deliver—both in terms of capacity and reliability—stand to capture a significant share of this burgeoning market.
Meanwhile, the people of Birmingham are preparing for change. The Nebius project is expected to bring not only jobs but also new educational opportunities and community partnerships. There’s a sense of excitement in the air—tempered, perhaps, by the knowledge that such transformations are rarely straightforward. But for now, the city is embracing its role as a laboratory for the future of AI.
As Nebius pushes forward with its multibillion-dollar plans, all eyes will be on Birmingham. Will the city become a model for AI-driven economic development? Only time will tell. But one thing is certain: the race to build the next generation of AI infrastructure is on, and Birmingham is officially on the map.