In a landmark move that underscores the growing demand for artificial intelligence computing power, IREN Limited announced a five-year, $9.7 billion cloud services agreement with Microsoft to deliver large-scale AI infrastructure powered by Nvidia’s GB300 processors.
The deal marks a major strategic shift for both companies. For Microsoft, it alleviates the ongoing shortage of high-performance GPUs needed to power advanced AI workloads. For IREN, formerly known for its Bitcoin mining operations, it cements the company’s transformation into a full-scale high-performance computing (HPC) provider.
Key Details of the Agreement
- Contract Term: Five years.
- Total Value: Approximately $9.7 billion, with Microsoft making a 20% prepayment as part of the deal.
- Hardware Procurement: IREN will source around $5.8 billion in Nvidia GPUs and supporting equipment from Dell Technologies to fulfill the contract.
- Deployment: The Nvidia GB300 chips will be installed in stages through 2026 at IREN’s Childress, Texas data center campus, one of the largest AI-focused facilities in North America.
- Revenue Impact: The partnership is projected to generate $1.94 billion in annualized revenue once fully deployed, utilizing about 10% of IREN’s total capacity.
Strategic Importance
For Microsoft, the collaboration expands its AI cloud infrastructure footprint without the capital intensity of building new data centers. It also helps the company secure long-term access to high-end Nvidia GPUs amid global shortages driven by surging AI demand.
For IREN, the deal represents a defining moment in its pivot from crypto mining to AI infrastructure. The company has repurposed its massive energy and data resources, originally built for Bitcoin mining, into a platform optimized for large-scale computing workloads.
Market Reaction
IREN’s shares surged in pre-market trading following the announcement, reflecting investor enthusiasm for the company’s successful transition into the booming AI infrastructure sector. Analysts noted that the Microsoft deal positions IREN as a critical infrastructure partner in the rapidly evolving AI economy.
With this agreement, Microsoft continues its aggressive expansion into AI computing, following recent partnerships with OpenAI and its growing collaboration with Nvidia, while IREN firmly establishes itself as a next-generation player bridging the worlds of blockchain energy infrastructure and enterprise AI.