Microsoft has committed approximately $9.7 billion to secure AI cloud capacity from Australian firm IREN. The five-year agreement grants Microsoft access to Nvidia accelerator systems, based on the GB300 architecture, located in Texas. IREN will use about 10% of its total capacity for this deal. As part of the agreement, Microsoft has made a 20% prepayment.
IREN has also entered into an agreement with Dell Technologies to purchase GPUs and related equipment for $5.8 billion. The GPU deployment will occur in phases through 2026 at IREN's Childress, Texas campus, supporting 200MW of critical IT load. The deal is projected to generate roughly $1.94 billion in annualised revenue for IREN.
IREN intends to fund the capital expenditures through existing cash, customer prepayments, operating cash flows, and additional financing. This partnership enhances Microsoft's AI infrastructure and expands IREN's reach in the AI cloud services market.
