Iren secures $9.7B AI Cloud contract with Microsoft

Iren (IREN) announced it has signed a multi-year GPU cloud services contract with Microsoft (MSFT). Under the agreement, IREN will provide Microsoft with access to NVIDIA (NVDA) GB300 GPUs over a five-year term, with a total contract value of approximately $9.7 billion, including a 20% prepayment. IREN has also entered into an agreement with Dell Technologies (DELL) to purchase the GPUs and ancillary equipment for approximately $5.8B. The GPUs are expected to be deployed in phases through 2026 at IREN’s 750MW Childress, Texas campus, in conjunction with the delivery of new liquid-cooled data centers that will collectively support 200MW of critical IT load (Horizon 1-4). IREN expects to fund the capital expenditures associated with the contract through a combination of existing cash, customer prepayments, operating cashflows and additional financing initiatives.