TLDR
- IREN secured a $9.7 billion five-year contract with Microsoft for AI cloud infrastructure using Nvidia GB300 GPUs
- The Australian data center operator’s shares jumped 25% in premarket trading on the announcement
- Microsoft will make a 20% prepayment that gets credited back in the final three years of the agreement
- IREN arranged a $5.8 billion purchase agreement with Dell Technologies for the required GPU hardware
- Deployment begins at IREN’s Childress, Texas facility with 200 megawatts of computing capacity through 2026
IREN shares rocketed 25% higher in premarket trading Monday after the company announced a massive deal with Microsoft. The $9.7 billion agreement will provide the tech giant with desperately needed AI computing capacity.
The five-year contract grants Microsoft access to Nvidia’s latest GB300 graphics processing units. These powerful chips represent the cutting edge of AI hardware technology.
Microsoft has been vocal about its AI capacity constraints. CFO Amy Hood told investors last week the shortage would persist into at least mid-2026.
The deal structure includes a 20% upfront payment from Microsoft. IREN will credit this prepayment back to Microsoft during years three through five of the contract.
Dell Hardware Partnership
IREN simultaneously announced a $5.8 billion agreement with Dell Technologies. Dell will supply the Nvidia GB300 processors and supporting equipment needed for the Microsoft partnership.
Dell shares rose 4.7% in premarket trading following the announcement. Microsoft stock gained 0.4% on the news.
The hardware will be installed at IREN’s Childress, Texas campus. This facility spans 750 megawatts of total capacity.
IREN plans phased deployment of the equipment through 2026. The rollout will include new liquid-cooled data centers designed for approximately 200 megawatts of critical IT load.
The company operates multiple data centers across North America totaling 2,910 megawatts. All facilities run entirely on renewable energy.
Funding and Flexibility
IREN will finance the capital expenditures through multiple channels. Sources include existing cash reserves, customer prepayments, operating cashflows and additional financing arrangements.
This partnership offers Microsoft a faster path to expanded capacity. The company can avoid the time-consuming process of building new data centers or securing additional power infrastructure.
Microsoft also sidesteps major upfront capital spending on chips. This matters because processors lose value quickly as newer models arrive.
From Crypto to AI
IREN started as a cryptocurrency mining operation. The company has steadily transitioned toward AI infrastructure services.
This shift puts IREN in the growing neocloud category. Companies like CoreWeave have made similar pivots from crypto mining to AI computing.
Cantor analyst Brett Knoblauch upgraded his outlook on IREN following the announcement. He raised his price target to $142 from $100 while maintaining an Overweight rating.
Knoblauch described the Microsoft deal as “game-changing” for IREN. He believes the partnership will attract additional customers and drive further growth.
The analyst expressed increased confidence that IREN’s full capacity will serve AI and high-performance computing needs. This validates the company’s strategic pivot away from cryptocurrency.
IREN’s market value reached $16.52 billion after Monday’s premarket surge. Shares have climbed more than six-fold during 2025 before this latest jump.
The Microsoft contract includes performance clauses. IREN faces potential termination if it fails to meet the delivery timeline for the phased deployment through 2026.
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