Data centre operator IREN announced on Monday that it has signed a five-year, $9.7 billion cloud services agreement with Microsoft, giving the technology giant access to Nvidia’s GB300 processors.
The partnership marks a major step in Microsoft’s ongoing effort to expand AI infrastructure and secure computing power amid intensifying demand across Big Tech.
The announcement sent the share price of IREN soaring by more than 20% during premarket trading, adding to its over 480% rally YTD.
The deal underscores Microsoft’s focus on scaling its AI and cloud capabilities as it races against rivals such as Amazon and Google to deliver advanced AI services.
For IREN, it represents a significant validation of its growing presence in the AI cloud space and a new partnership with one of the world’s largest technology firms.
“This agreement not only validates IREN’s position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers,” co-CEO Daniel Roberts said in a statement.
“It marks another major step forward for IREN as we continue to expand large-scale GPU deployments across our 3GW secured power portfolio in North America, reinforcing our position as a leading AI Cloud Service Provider.”
Microsoft strengthens AI infrastructure with Nvidia chips
Under the deal, IREN will provide Microsoft access to Nvidia’s latest GB300 processors, with the GPUs to be deployed in phases through 2026 at IREN’s 750-megawatt campus in Childress, Texas.
The company said the project will include the construction of new liquid-cooled data centres capable of supporting 200 megawatts of critical IT load.
Microsoft said the collaboration reflects its commitment to developing high-performance AI infrastructure for its customers.
“Together with IREN, Microsoft is delivering cutting-edge AI infrastructure,” said Jonathan Tinter, President of Business Development and Ventures at Microsoft.
“IREN’s expertise in integrated AI cloud operations and its secured power capacity make them a strategic partner.”
IREN also entered into an agreement with Dell Technologies to procure the chips and supporting hardware for about $5.8 billion.
The contract with Microsoft includes a 20% prepayment, and IREN plans to fund the capital expenditures using a mix of existing cash, customer prepayments, operating cash flows, and additional financing initiatives.
Expanding AI and bitcoin operations
Shares of IREN have surged by over 480% this year.
The company has been rapidly expanding its AI cloud business, recently doubling its capacity to 23,000 GPUs after acquiring 12,400 additional units for roughly $674 million.
IREN expects to achieve $1.25 billion in annualised revenues by the end of 2025, with about $1 billion derived from bitcoin mining and $200–250 million from AI cloud operations.
The company, which remains one of the world’s largest and lowest-cost bitcoin miners, recently raised $979 million through an oversubscribed convertible note offering to support its expansion.
While volatility in bitcoin prices continues to pose risks, IREN’s growing AI cloud division is emerging as a key driver of diversification and long-term growth.
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