Deal Overview

Microsoft has formalized a five‑year contract valued at $9.7 billion with IREN, an Australian‑based data‑center operator. The agreement secures additional AI cloud capacity for Microsoft’s Azure platform, addressing growing customer demand for high‑performance artificial‑intelligence services.

Infrastructure and Technology

The capacity will be built around Nvidia’s GB300 graphics processing units, which are optimized for reasoning models, agentic AI systems, and multimodal generative AI. IREN plans to deploy these GPUs in phases through 2026 at its facility in Childress, Texas, a site designed to support up to 750 megawatts of power.

Complementary Investments

In parallel with the Microsoft contract, IREN is purchasing additional GPUs and related equipment from Dell, an investment reported to be roughly $5.8 billion. This complementary spend underscores IREN’s commitment to expanding its AI‑focused compute infrastructure.

Strategic Shift from Mining to AI

Originally founded as a bitcoin‑mining operation, IREN has redirected its substantial GPU inventory toward AI workloads. The transition reflects a broader industry trend where compute assets previously dedicated to cryptocurrency mining are being repurposed for artificial‑intelligence applications.

Financial Impact

According to reports, the Microsoft deal is expected to represent about 10 percent of IREN’s total capacity while generating approximately $1.94 billion in annualized revenue for the company. This revenue stream highlights the financial significance of the partnership for IREN.

Broader Market Context

The agreement follows Microsoft’s recent launch of its first production cluster featuring Nvidia’s GB300 NVL72 systems for Azure. Similar deals, such as Microsoft’s partnership with Nscale for roughly 200,000 Nvidia GB300 GPUs across multiple data centers, illustrate the company’s aggressive strategy to secure GPU‑rich infrastructure worldwide.

Implications for Azure Customers

By securing this additional capacity, Microsoft aims to ensure that Azure customers have reliable access to cutting‑edge AI compute resources. The partnership with IREN enhances Microsoft’s ability to support demanding AI workloads and reinforces its position in the competitive cloud services market.

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