TLDRs:
- IREN secures major $1.6B Nvidia Blackwell infrastructure deal with Dell.
- Texas data center expansion boosts AI computing capacity and future revenue outlook.
- Contract supports multi-billion-dollar cloud AI services agreement and long-term growth strategy.
- Nvidia retains option to invest up to $2.1B in IREN stake.
IREN, a data center operator with operations across Singapore and Australia, has entered into a landmark agreement to acquire approximately $1.6 billion worth of Nvidia’s next-generation Blackwell AI systems through Dell.
The equipment will be deployed at the company’s large-scale Childress campus in Texas, marking a major step in its expansion into high-performance artificial intelligence infrastructure.
The deal, announced on May 26, covers a comprehensive suite of hardware and services, including Nvidia graphics processing units (GPUs), servers, storage systems, networking equipment, and supporting infrastructure such as integration services and warranties. The systems are expected to be delivered and operational by early 2027.
Texas Campus Expansion Drive
At the center of this investment is IREN’s 576-acre Childress, Texas facility, which has been positioned as a strategic hub for AI computing. The site already holds secured power capacity of 750 megawatts, giving it the scale required to support large AI workloads.
According to the company, approximately 60 megawatts of existing capacity will be allocated specifically to air-cooled Nvidia Blackwell systems. This deployment is designed to handle high-intensity AI workloads while optimizing energy efficiency within the existing infrastructure footprint.
The expansion reinforces Texas’s growing role as a major destination for AI data center development, driven by available land, energy access, and rising demand for computational capacity.
Revenue Outlook Upgraded
IREN expects the Nvidia-powered deployment to significantly enhance its financial performance once the systems are fully commissioned. The company projects that its annualized revenue run rate will rise to approximately $4.4 billion, up from a previous estimate of $3.7 billion.
This uplift reflects growing demand for cloud-based AI services, as well as IREN’s strategic positioning as a provider of large-scale, high-performance computing infrastructure. The Blackwell systems are expected to be a key driver of future contract fulfillment, particularly under its broader cloud AI services agreement with Dell.
The deal also strengthens IREN’s five-year, $3.4 billion cloud AI services partnership with Dell, aligning hardware investment with long-term service revenue streams.
Nvidia Investment Optionality
Beyond the hardware supply agreement, Nvidia has also secured a financial foothold in IREN through an investment option. The company holds the right to invest up to $2.1 billion in IREN over a five-year period.
This option allows Nvidia to acquire up to 30 million shares at a fixed price of $70 per share, signaling potential long-term alignment between the chipmaker and the data center operator. While not an immediate equity investment, the structure provides Nvidia with strategic flexibility as demand for AI compute infrastructure continues to grow.
For IREN, the arrangement adds another layer of validation from one of the world’s leading AI hardware companies, further embedding it within the global AI supply chain ecosystem.
As AI infrastructure demand accelerates globally, IREN’s Texas expansion, backed by Nvidia’s Blackwell systems and Dell’s integration, positions the company as an emerging heavyweight in the rapidly scaling AI data center industry.
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