Microsoft has signed a landmark $9.7 billion deal with data-center operator IREN to boost its artificial intelligence and cloud computing capabilities. The deal provides access to Nvidia’s latest chips without forcing Microsoft to build new data centers or find extra power supplies as a key consideration as worldwide demand for AI continues to soar.
Inside the Microsoft with IREN Partnership
Under the deal, Microsoft will prepay 20 percent of the contract’s total value, it said. IREN will in turn use some of the money to satisfy its $5.8 billion supply deal with Dell for Nvidia GB300 chips and associated hardware. Those will be installed at IREN’s 750-megawatt, liquid-cooled AI data center campus in Childress, Texas which is engineered for 200 megawatts of critical IT load.
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IREN is a $16.52 billion company running multiple renewable powered data centers across North America, which boast a total capacity of 2,910 megawatts. According to the company, the deal with Microsoft will provide a catalyst that accelerates its shift from bitcoin mining into AI infrastructure for stability and long-term growth. The announcement saw IREN rise in pre-market trading by 20 percent on Monday from $60.75 to $73.
Expanding Microsoft’s Global AI Ambitions
The U.S., Microsoft is doubling down on AI investments worldwide. On Monday, the company also announced a $15.2 billion investment plan in the United Arab Emirates aimed at increasing its AI and cloud computing presence in the region. Brad Smith, Microsoft’s vice chairman and president, said the initiative includes $7.9 billion of new spending through 2029, after an earlier investment of $7.3 billion since 2023.
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The UAE expansion, conducted in partnership with G42, the country’s sovereign AI company, will fund new data centers and local operations. About two-thirds of the total spending will be used to build AI and cloud facilities, with the remainder directed to support regional operations and infrastructure.
Nvidia, Dell Gain as Microsoft Ups AI Investments
News of the Microsoft with IREN deal and the UAE investment buoyed shares of major technology players. Nvidia rose 2.6 percent on expectations that demand for its GPUs would keep growing, while Dell jumped 5 percent after landing a central role in supplying the hardware for IREN’s next-generation data centers.
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Disclaimer: This article is based on publicly available information. Figures and details may change as new updates are released.
