A Strategic Milestone in AI Infrastructure

IREN Limited (NASDAQ: IREN) announced a landmark multi-year cloud computing agreement with Microsoft valued at approximately $9.7 billion, one of the largest AI infrastructure contracts ever signed between a hyperscale technology provider and an emerging data center operator.

Under the deal, IREN will provide Microsoft with access to NVIDIA GB300 GPUs over a five-year period. The company also secured a complementary agreement with Dell Technologies to supply the necessary hardware and ancillary equipment for roughly $5.8 billion.

The agreement underscores Microsoft’s aggressive expansion of its AI infrastructure as demand for large-scale compute capacity surges globally. For IREN, it represents a transformational step in evolving from a regional cloud operator into a global-scale AI compute supplier.

Deployment Across U.S. Data Centers

According to the statement, the GPUs will be deployed in phases through 2026 across IREN’s 750MW Childress, Texas campus, supported by newly built liquid-cooled data centers designed for high-efficiency AI workloads. Once fully operational, these facilities will deliver over 200MW of critical load power capacity across multiple “Horizon” phases.

This deployment aims to provide Microsoft with dedicated GPU capacity for training and inference workloads linked to its Azure AI platform and enterprise customers — reinforcing the company’s goal to become the most comprehensive AI cloud ecosystem globally.

Financial Structure and Investment Strategy

To fund the capital expenditures associated with the project, IREN plans to combine existing cash reserves, customer prepayments, and operating cashflows with additional financing initiatives. The company stated that approximately 20% of the total contract value has already been prepaid.

This hybrid financing model is expected to improve liquidity while ensuring that IREN maintains full control over infrastructure development timelines. Analysts suggest that the contract could potentially double IREN’s annual revenue by 2027 and establish recurring cashflows through long-term AI compute leasing agreements.

Executive Commentary

IREN’s Co-Founder and Co-CEO, Daniel Roberts, highlighted the deal as a defining moment for the company’s evolution:

“We’re proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform.
This agreement validates IREN’s position as a trusted provider of AI cloud services and opens access to new customer segments among global hyperscalers.”

Roberts added that the collaboration positions IREN as a key partner in the next phase of global AI infrastructure expansion:

“This partnership is not only about capacity — it’s about trust, performance, and shared vision. Together with Microsoft, we are helping build the backbone of the AI-powered future.”

Broader Industry Implications

The contract reinforces Microsoft’s strategy of diversifying its AI compute supply chain amid intensifying competition with Amazon Web Services and Google Cloud. It also positions IREN as one of the few independent companies capable of delivering high-density, liquid-cooled GPU clusters at industrial scale.

For the broader market, this deal highlights a clear trend: hyperscale AI demand is increasingly flowing toward specialized data center providers capable of managing both power and cooling efficiency. With GPU scarcity and high capital costs reshaping the industry, partnerships like this could redefine the economics of cloud infrastructure over the next decade.