IREN Stock Soars After $9.7 Billion Microsoft Deal

IREN shares surge as Microsoft signs a $9.7 billion AI cloud agreement, marking a major shift in the global tech infrastructure race.

IREN Signs Landmark $9.7 Billion Contract with Microsoft

IREN Limited (NASDAQ: IREN) has secured a five-year contract worth about $9.7 billion with Microsoft Corporation — a defining moment in its evolution from digital mining to large-scale AI cloud infrastructure.

Under the deal, IREN will provide Microsoft with GPU-powered AI cloud services built on NVIDIA’s new GB300 chips. These systems will be deployed at IREN’s expanding Childress, Texas data-center campus — targeting one of the world’s largest GPU clusters for artificial intelligence.

The agreement includes a 20 % upfront payment from Microsoft, giving IREN strong liquidity to fast-track deployment. In parallel, IREN signed a $5.8 billion procurement deal with Dell Technologies for hardware, servers, and cooling systems essential for the rollout.

Deployment will progress through 2026, scaling to 750 megawatts of total capacity — with 200 MW dedicated to critical AI compute. Construction has already begun with next-generation liquid-cooling and renewable-energy systems.

A Turning Point for IREN

This deal marks IREN’s transformation into a core AI infrastructure provider, aligning with the surging demand for high-performance GPU computing.
The company’s pivot from crypto mining to AI-driven data centers positions it among emerging GPU-as-a-service firms competing with CoreWeave and Lambda.

For Microsoft, the partnership diversifies GPU access at a time when global chip demand is straining supply, giving it scalable, flexible compute capacity.

Market Reaction and Financial Outlook

Following the announcement, IREN stock jumped more than 20 % in pre-market trading — reaching its highest level of 2025. Institutional investors such as X Square Capital LLC reportedly increased exposure to the company.

The surge highlights investors’ enthusiasm for AI infrastructure stocks, though analysts caution that execution and financing remain critical. The $5.8 billion Dell deal and major energy investments will test IREN’s ability to manage costs and sustain cash flow.

Broader Impact on the Tech Sector

The IREN-Microsoft alliance underscores how hyperscalers increasingly rely on third-party GPU providers to expand faster and cheaper. Compute capacity has become the new competitive edge, and specialized operators like IREN enable cloud giants to accelerate AI deployment without overbuilding.

The deal also reinforces NVIDIA’s market dominance, as its GB300 chips form the backbone of Microsoft’s next-generation AI systems.

What Lies Ahead

IREN plans to:

Fully expand its Texas campus to 750 MW capacity by 2026.
Deploy modular AI-ready data-center designs.
Attract more enterprise clients beyond Microsoft.
Integrate sustainable energy for efficient, green compute.

If executed well, IREN could rise from a niche player to a global leader in AI infrastructure, shaping the next decade of data-center innovation.

Frequently Asked Questions

1. Why did Microsoft choose IREN for this deal?
Because IREN offers large-scale, energy-efficient GPU infrastructure ready for rapid deployment. It allows Microsoft to expand AI compute power faster without major capital delays.

2. What technology will power this AI infrastructure?
IREN will deploy NVIDIA’s GB300 GPU chips, designed for high-density AI workloads and advanced liquid-cooling efficiency.

3. How does this affect IREN’s business model?
The deal shifts IREN from cryptocurrency mining to enterprise-grade AI cloud services — a long-term, revenue-stable model tied to global AI demand.

4. Could this partnership face risks?
Yes. Execution delays, high financing costs, or hardware supply-chain issues could pressure profit margins or timelines.

5. Will other tech giants follow this model?
Likely. As AI demand grows, more hyperscalers may outsource GPU infrastructure to specialized data-center providers like IREN.