Microsoft and IREN have a five-year, $9.7 billion AI cloud services agreement. Under the deal, IREN will provide Microsoft with access to high-performance AI computing capacity, utilizing Nvidia's GB300 GPUs housed in IREN's data centers in Texas. 
Key Details of the Agreement
  • Contract Value and Duration: The agreement is valued at approximately $9.7 billion and runs for five years, through 2031.
  • Services Provided: IREN (formerly a bitcoin miner) will act as an AI cloud service provider, managing and hosting the computing infrastructure for Microsoft, who will use the capacity for its Azure AI services.
  • Hardware: The deal provides Microsoft access to systems built with Nvidia's advanced GB300 GPUs, which are designed for demanding AI workloads.
  • Location and Capacity: The GPUs will be deployed in phases through 2026 at IREN's new liquid-cooled "Horizon" data centers at its campus in Childress, Texas, supporting approximately 200 megawatts of critical IT load.
  • Funding and Procurement:
    • Microsoft made a 20% prepayment as part of the contract, which helps fund the capital expenditures.
    • To fulfill the contract, IREN entered a separate $5.8 billion agreement with Dell Technologies to purchase the necessary GPUs and related equipment.
  • Strategic Importance: The deal is a significant win for IREN, marking its successful transition from cryptocurrency mining to a major AI infrastructure provider and securing a hyperscaler (Microsoft) as its largest customer. For Microsoft, the partnership allows rapid expansion of its AI capacity without the long lead times and heavy capital costs of building its own facilities from scratch. IREN's use of renewable energy sources for its operations also aligns with Microsoft's sustainability goals. 

 

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