AI Infrastructure Deal
AIB and Nebius Sign Major 50-MW Data Center Capacity Agreement
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Key Points
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Nebius said AIB’s existing power position helped it address the industry’s “time-to-power” constraint, and that the capacity will support AI training and inference workloads.
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The site is not publicly identified, but Data Center Dynamics reported that an investor presentation suggests it is CLT1 in South Carolina.
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AIB had recently acquired two adjacent Texas parcels totaling 29.4 acres, adding 55 MW of power capacity, including 15 MW already energized.
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The site’s existing 65 MW utility arrangement is a 15-year Electric Service Agreement and, according to AIB, requires no significant additional electrical infrastructure upgrades.
AIB Data Centers signed a 12-year deal to supply 50 MW of computing power to Nebius, a cloud infrastructure company, at a southeastern U.S. site. The contract includes two five-year renewal options and is expected to come online in 10 to 14 months. TradingView reported that customer prepayments and project financing will fund most of the construction, eliminating the need for new shareholder equity.
The deal validates AIB's strategy of locking in power deals early and converting them into long-term AI infrastructure revenue. Despite the announcement, AIB shares fell nearly 12% on Wednesday trading, signaling investor skepticism even as the company projects 90% EBITDA margins on the facility.
50 MW Coming Online Across Two Data Halls
The capacity will be split between two separate data halls with staggered timelines. The first data hall is expected online in about 10 months, while the second comes online roughly four months later. Data Center Dynamics reported the facility will handle both AI training and inference workloads for Nebius.
The site sits on an existing 15-year Electric Service Agreement with 65 MW of utility power already arranged. AIB stated that no major electrical infrastructure upgrades are needed, meaning the power backbone is already in place and ready.
No New Equity Needed, Only Prepayments and Project Debt
Customer prepayments from Nebius, along with project-level financing and preferred equity, will cover most construction costs. TradingView noted the deal structure eliminates the need for new common equity and reduces shareholder dilution, a major win for existing investors worried about capital spending.
This funding approach is critical in a competitive AI data center market where raising large equity rounds can dilute ownership. By securing a 12-year customer contract upfront, AIB can leverage that revenue stream to finance the build, keeping more ownership in-house.
South Carolina Site Addresses Industry Power Bottleneck
Data Center Dynamics reported that an investor presentation suggests the facility is CLT1 in South Carolina. The location matters because Nebius cited AIB's existing power position as key to solving the "time-to-power" constraint—the industry's biggest growth bottleneck.
Most AI companies race to find power before land or cooling. By buying into a site with 65 MW already secured, Nebius skipped years of utility negotiations. AIB has further strengthened its power portfolio by acquiring two adjacent Texas parcels totaling 29.4 acres and 55 MW of power capacity, including 15 MW already energized.
Stock Drop Signals Investor Concern Despite Revenue Win
AIB shares fell nearly 12% on the day of the announcement, a surprising reaction to what the company framed as a transformational revenue deal. The decline suggests investors may worry about execution risk, margin assumptions, or broader market conditions.
AIB projects 90% EBITDA margins on the facility, which would be exceptional if achieved. Whether the stock recovers depends on whether the company delivers on-time, stays within budget, and demonstrates the AI data center business can scale profitably.
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