Microsoft signs $9.7 billion deal with IREN to advance AI push | Full details

Microsoft has signed a $9.7 billion deal with data-center operator IREN. The deal includes access to Nvidia's advanced chips. The news of the deal caused a surge in IREN's share in premarket trading. The share prices of Dell also rose 5 per cent because it will provide IREN with Nvidia's GB300 chips and other equipment Microsoft will use.

Full details of Microsoft-IREN deal

This partnership will allow Microsoft to increase its computing capacity without constructing new data centers or securing additional power to meet the company's AI demand. Tech companies need data centers and power to realize their AI goals.

After the deal, the company will also sidestep the need to spend heavily on chips, which will eventually give way to more powerful chips in the near future.

IREN's market value is $16.52 billion. The company operates several data centers across North America. These facilities are powered by renewable energy, and their total capacity is 2,910 megawatts.

IREN said in a filing that the money from Microsoft will help finance its $5.8 billion deal with Dell.

Its Microsoft contract could be terminated if it fails to meet the delivery timelines. The $9.7 billion agreement will strengthen IREN’s position in the AI data center market. The company's share rose 20 per cent in pre-market trading on Monday.

Microsoft will prepay 20% of the totalcontract value, according to Reuters.

The hardware will be installed at IREN’s 750-megawatt Childress, Texas campus. This liquid-cooled AI data centre will support 200 megawatts of critical IT load.

IREN co-founder and co-CEO Daniel Roberts said the deal demonstrates the scalability of the company’s vertically integrated AI cloud platform.

Microsoft said that the deal would ensure that the company's customers get efficient AI infrastructure. IREN is one of the top three public bitcoin mining companies. It is now expanding its operations into AI infrastructure, hoping for long-term revenue stability.

IREN's share rose from $60.75 on Friday to $73 on Monday.