Microsoft Strikes $9.7B Cloud Deal with IREN to Power AI Growth
In a major move that’s sending ripples through the tech and investment world, Microsoft has just signed a massive cloud services contract worth nearly US$9.7 billion with IREN , a data centre owner and operator. The agreement is all about giving Microsoft access to Nvidia’s next-generation GB300 processors — some of the most powerful chips designed to accelerate artificial intelligence workloads.
Under this five-year deal, Microsoft will rely on IREN to help boost its cloud computing and AI infrastructure — a timely move as demand for AI services continues to skyrocket across the tech industry. With companies like OpenAI, Google, and Amazon racing to expand their AI capabilities, Microsoft is clearly taking no chances in ensuring it has enough computing power to stay ahead.
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IREN confirmed that the new Nvidia GB300 processors will be deployed in phases through 2026 , at its 750-megawatt data campus in Childress, Texas . That’s a massive facility, and this deal is expected to make it one of the most advanced AI hosting hubs in the world. Microsoft’s contract reportedly includes a 20 percent prepayment , underlining just how serious the tech giant is about securing long-term chip access amid ongoing global demand.
In addition to the Microsoft deal, IREN also announced an agreement with Dell Technologies to buy chips and other related hardware worth about US$5.8 billion . That combination — working with both Dell and Microsoft — signals that IREN is positioning itself as a key player in the next phase of AI data infrastructure.
The market reacted almost instantly. IREN’s shares jumped nearly 18 percent in premarket trading following the announcement. Investors appear to see this partnership as a game-changer, not only for IREN but also for the broader AI ecosystem. The collaboration effectively ties IREN to two of the biggest names in global technology — Microsoft and Nvidia — putting it in a powerful position to benefit from the ongoing AI boom.
This deal also highlights a broader trend we’ve been seeing across the industry. As AI applications grow more complex, companies are struggling to meet the enormous computational demands that come with them. Cloud providers like Microsoft are racing to secure access to the latest and most efficient chips, while infrastructure partners such as IREN step in to supply the space, power, and cooling capacity these chips require.
In short, this partnership isn’t just about a big dollar figure — it’s a strategic alliance aimed at shaping the future of AI computing. With deployments already planned through 2026, both Microsoft and IREN seem poised to play leading roles in the next wave of cloud and AI innovation.
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