Joy Agwunobi 

Microsoft has entered into a $9.7 billion multi-year cloud services agreement with IREN Limited, an artificial intelligence (AI) cloud service provider, in a deal that will grant the tech giant access to NVIDIA’s latest GB300 GPUs to support the increasing global demand for AI computing power.

The five-year contract, which includes a 20 percent prepayment, underscores Microsoft’s ongoing drive to scale its AI infrastructure and maintain its competitive edge in the rapidly expanding generative AI market.

Under the agreement, IREN will supply Microsoft with GPU capacity over the contract period, leveraging its advanced AI cloud platform and infrastructure capabilities. The GPUs, which will be sourced through a separate procurement agreement with Dell Technologies valued at approximately $5.8 billion, are expected to be deployed in phases through 2026.

According to IREN, the hardware will be installed at its 750MW Childress, Texas campus, supported by a new series of liquid-cooled data centres capable of handling up to 200MW of critical IT load under its “Horizon 1–4” expansion plan.

The company said it plans to fund the required capital expenditure through a mix of existing cash reserves, customer prepayments, operational cash flows, and additional financing initiatives.

Daniel Roberts, co-founder and co-CEO of IREN, described the deal as a landmark partnership that cements the company’s standing in the AI infrastructure space.

“We’re proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform.This agreement 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. It marks another major step forward as we expand large-scale GPU deployments across our 3GW secured power portfolio in North America, reinforcing our position as a leading AI Cloud Service Provider,”Roberts said.

From Microsoft, the deal reflects its commitment to building world-class AI infrastructure to meet growing enterprise and developer needs.

Jonathan Tinter, president of business development and ventures at Microsoft, said the collaboration combines the strengths of both companies to accelerate AI innovation.

“Together with IREN, Microsoft is delivering cutting-edge AI infrastructure for our customers,” Tinter noted, adding “IREN’s expertise in building and operating a fully integrated AI cloud from data centers to GPU stack combined with their secured power capacity makes them a strategic partner. This collaboration unlocks new growth opportunities for both companies and the customers we serve.”