Key Points
- IREN signed a nearly $9.7 billion, five-year cloud services contract with Microsoft.
- The deal provides Microsoft with access to Nvidia’s latest GB300 AI processors.
- IREN’s stock jumped about 18% in premarket trading following the announcement.
- IREN will purchase the chips and equipment from Dell for about $5.8 billion.
Data center company IREN announced a massive deal on Monday, signing a nearly $9.7 billion cloud services contract with Microsoft. Under the five-year agreement, IREN will provide the tech giant with access to Nvidia’s powerful GB300 artificial intelligence processors.
The move highlights Microsoft’s urgent push to expand its AI and data center infrastructure amid soaring demand for AI that outpaces available cloud capacity at major tech companies.
The news sent IREN’s shares soaring by about 18% in premarket trading. To fulfill the contract, IREN also announced that it has entered into a deal with Dell Technologies to purchase the necessary Nvidia chips and other equipment. This purchase will cost IREN about $5.8 billion.
IREN plans to deploy the new GB300 processors in stages through 2026 at its large, 750-megawatt campus in Childress, Texas. The company also noted that its contract with Microsoft includes a significant 20% prepayment, showing Microsoft’s commitment to securing the much-needed computing power.
This deal positions IREN as a key player in the AI infrastructure boom, leveraging its data center capacity to meet the needs of the world’s largest tech companies.
