Microsoft signs $9.7 billion deal with IREN to boost AI cloud infrastructure

The five-year partnership secures Microsoft access to Nvidia GB300 systems hosted in IREN’s Texas data centre, strengthening Azure’s AI computing capacity amid growing global demand

Microsoft has entered into a five-year, USD 9.7 billion agreement with Australian data centre operator IREN to secure advanced artificial intelligence (AI) cloud capacity. The deal provides Microsoft guaranteed access to Nvidia GB300 accelerator systems, specifically engineered to handle large-scale AI workloads. These systems will be housed at IREN’s rapidly expanding data centre campus in Childress, Texas.

Strengthening AI capabilities amid infrastructure bottlenecks

The partnership offers Microsoft a strategic solution to ease ongoing AI compute shortages. Over the past year, the company has invested heavily in expanding its Azure cloud infrastructure to meet soaring demand for generative AI services. By partnering with IREN, Microsoft can access powerful next-generation GPUs more quickly, avoiding delays typically associated with building and powering new data centres from scratch.

This approach also allows Microsoft to mitigate the financial risks tied to hardware depreciation in the fast-evolving semiconductor market. It reflects the company’s broader strategy to diversify infrastructure partnerships and sustain its competitive edge against Amazon Web Services and Google Cloud.

Hardware deployment and market impact

As part of the deal, IREN will acquire GPUs and related hardware through a separate USD 5.8 billion agreement with Dell Technologies. The Nvidia GB300 systems will be deployed in phases throughout 2026 at IREN’s Childress facility, which is being developed into a large-scale, liquid-cooled AI data centre with 200 megawatts of critical IT capacity.

Microsoft has prepaid 20% of the total contract value, providing IREN with upfront capital to fund equipment purchases and accelerate construction. For IREN—previously focused on cryptocurrency mining—the deal marks a significant pivot toward high-margin AI infrastructure services.

IREN CEO Daniel Roberts said the partnership validates the scalability of its integrated AI Cloud platform. Following the announcement, IREN’s shares surged, while Dell Technologies also saw gains as the designated hardware supplier.

This landmark deal underscores the intensifying race among global cloud leaders to secure the computing power necessary to fuel the next generation of AI-driven innovation.