In one of the largest external cloud infrastructure agreements in history, Meta Platforms has signed a massive five-year deal with Amsterdam-based neocloud provider Nebius Group (NASDAQ: NBIS). Announced on March 16, 2026, the contract is valued at up to $27 billion, signaling Meta’s aggressive push to secure the specialized computing power necessary for its next generation of AI models.
A Two-Tranche Power Play
The $27 billion agreement is structured into two primary components, ensuring both guaranteed access and future flexibility:
- Dedicated Capacity ($12 Billion): Nebius will build and provide dedicated AI infrastructure across multiple global locations. This portion is based on the first large-scale deployments of NVIDIA’s Vera Rubin platform, with deliveries scheduled to begin in early 2027.
- Additional Compute Commitment ($15 Billion): Meta has committed to purchasing up to $15 billion in additional capacity from upcoming Nebius clusters. While Nebius intends to sell this capacity to third-party customers, Meta serves as the “anchor buyer” for any remaining resources.
The Rise of the “Neocloud”
The deal cements Nebius’s status as a top-tier “neocloud”—a specialized cloud operator that, unlike generic giants like AWS or Azure, builds infrastructure specifically architected for high-intensity AI training and inference.
This partnership follows a series of strategic wins for Nebius:
- NVIDIA Backing: Just last week, NVIDIA announced a $2 billion investment in Nebius to help it deploy over 5 gigawatts of AI capacity by 2030.
- Microsoft Rivalry: The Meta deal closely follows a similar $19.4 billion agreement Nebius signed with Microsoft in late 2025.
- Existing Relationship: This new contract is a nine-fold expansion of a smaller $3 billion deal Meta signed with the company last November.
Financial and Market Impact
Following the announcement, Nebius shares surged 15% in midday trading, pushing its market cap above $32 billion. For Meta, the deal is a primary component of its projected $115 billion to $135 billion capital expenditure for 2026.
| Metric | Details |
| Total Contract Value | Up to $27 Billion |
| Tenure | 5 Years |
| Primary Hardware | NVIDIA Vera Rubin |
| Deployment Start | Early 2027 |
Balancing the “AI Tax”
While the infrastructure investment is essential for the development of Llama 4 and beyond, the sheer scale of the spend is putting pressure on Meta’s bottom line. Reports suggest that Meta is planning sweeping layoffs—potentially affecting 20% of its workforce—to offset these soaring infrastructure costs and pivot toward a more “AI-efficient” operational model.
The deal also provides a crucial hedge against regional supply chain disruptions. As the US-Iran war continues to create logistics bottlenecks in the Middle East, securing diverse, long-term capacity through a European partner like Nebius offers Meta a vital data-security buffer.
