IREN Inks $9.7 Billion Microsoft Deal: A New Era for AI Cloud Services

Microsoft Partnership Unlocks Massive Expansion for IREN’s AI Cloud

In a pivotal move that underscores its position in the AI infrastructure landscape, IREN Limited (NASDAQ: IREN) has announced a $9.7 billion, multi-year GPU cloud services agreement with Microsoft. The contract will provide Microsoft access to NVIDIA GB300 GPUs over the next five years, with a hefty 20% prepayment up front—a sign of Microsoft’s strong commitment to the partnership and IREN’s cloud capabilities.

$5.8 Billion GPU Acquisition Sets the Foundation

To deliver on its contract with Microsoft, IREN will source the GPUs and supporting technology from Dell Technologies at a cost of approximately $5.8 billion. The deployment of these GPUs will unfold in phases through 2026 at IREN's massive 750MW campus in Childress, Texas. Here, new liquid-cooled data centers will be developed, ultimately powering 200MW of critical IT load under the “Horizon 1-4” rollout.

Vertical Integration and Power Portfolio Fuel Ambitious Growth

This major contract places IREN at the center of hyperscale AI innovation, thanks in part to its unique, vertically integrated platform. By owning and operating a 3GW power portfolio in renewable-rich regions of the U.S. and Canada, IREN is able to ensure consistent, efficient scaling for large-scale GPU clusters, directly targeting the demands of high-performance AI training and inference.

Strategic Financing Secures Path Forward

To finance this massive project, IREN will tap multiple funding sources, including the contract’s prepayment, existing cash reserves, operating cashflows, and potential additional financing. This blended funding approach reflects prudent risk management, ensuring the company is positioned to execute on both near-term and long-term objectives.

What’s at Stake: IREN’s Growing Influence in the AI Cloud Sector

The scale of the Microsoft deal signals both validation and opportunity for IREN. By securing a partnership with a global cloud leader and lining up major hardware from Dell, IREN steps beyond the competition to serve next-generation AI workloads. Notably, this is the type of transaction that opens doors to more global hyperscalers, potentially accelerating IREN’s share of a fast-growing market.

Leadership Perspective: "A Major Step Forward"

Daniel Roberts, Co-Founder & Co-CEO of IREN, described the agreement as a “milestone partnership,” emphasizing IREN’s capacity to meet rising AI demand at scale and to serve a broader, global clientele. Microsoft’s President of Business Development, Jonathan Tinter, underscored IREN’s unique expertise and the mutual benefits expected for both companies and their end users.

Takeaway: IREN Positions Itself for the Future of AI Infrastructure

This contract places IREN at the forefront of AI cloud evolution. While the opportunity is immense, the road ahead is not without risks—execution on capital deployment, expansion, and ongoing partnerships will be closely watched by investors and industry observers alike. But if successful, IREN’s combination of scalable infrastructure, strategic partnerships, and secure funding may prove a winning formula in the global AI arms race.

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