Microsoft has reached a $9.7 billion agreement with data center operator IREN to expand its artificial intelligence computing capabilities amid soaring global demand. The five-year deal gives Microsoft access to Nvidia’s cutting-edge GB300 processors, with Dell supplying the necessary hardware for $5.8 billion of the contract’s value.
The partnership marks a strategic move by Microsoft to boost AI capacity without the delays and costs of constructing new data centers. Instead, IREN’s facilities — including its 750-megawatt campus in Childress, Texas — will deploy Nvidia chips in stages through 2026, supported by liquid-cooled data centers designed to add 200 megawatts of IT power.
IREN’s stock surged nearly 25% after the announcement, reflecting investor confidence in its growing role within the “neocloud” ecosystem — a group of specialized firms like CoreWeave and Nebius that build cloud platforms optimized for AI workloads. Microsoft recently signed a $17.4 billion deal with Nebius to further expand infrastructure access.
The agreement also enables Microsoft to sidestep significant capital expenditures and mitigate hardware depreciation risks as AI chips evolve rapidly. IREN will use prepayment funds from Microsoft to partially finance its deal with Dell, though the contract includes provisions for termination if delivery targets are not met.
