IREN shares surge after $9.7 billion AI cloud deal with Microsoft

Investing.com -- Shares of IREN Limited have jumped more than 24 percent premarket on Monday after the company announced a multiyear GPU cloud services agreement with Microsoft valued at about $9.7 billion.

Under the five-year deal, IREN will provide Microsoft with access to NVIDIA GB300 GPUs, with Microsoft making a 20 percent prepayment.

IREN also revealed it has entered into an agreement with Dell Technologies to buy GPUs and related equipment worth roughly $5.8 billion.

The hardware will be installed in stages through 2026 at IREN’s 750-megawatt campus in Childress, Texas, where the company is developing liquid-cooled data centers to support about 200 megawatts of critical IT load across four phases.

IREN stated that it plans to fund the project using a mix of existing cash, customer prepayments, operating cash flow, and additional financing.

Daniel Roberts, IREN’s co-founder and co-CEO, believes the Microsoft deal “highlights the strength and scalability of our vertically integrated AI Cloud platform.”

He added that the partnership “not only validates IREN’s position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers.”

Jonathan Tinter, Microsoft’s president of business development and ventures, said the companies are “delivering cutting-edge AI infrastructure for our customers,” citing IREN’s “expertise in building and operating a fully integrated AI cloud - from data centers to GPU stack.”

IREN said the contract reinforces its position as a leading AI cloud service provider and marks a significant step in expanding its large-scale GPU deployments across its 3-gigawatt secured power portfolio in North America.

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