In a groundbreaking shift that changes the nature of its business, Iris Energy Limited (IREN) has signed a multi-year GPU cloud services deal with Microsoft, worth $9.7 billion, causing its stock to surge nearly 20%. The announcement also included a sourcing deal of $5.8 billion with Dell Technologies for GPUs, confirming IREN’s entry into the rapidly growing AI data center/cloud computing markets.
The stunning pivot highlights IREN’s transition from a Bitcoin mining company to a next-generation AI infrastructure company, where it will compete with the world’s largest technologies in artificial intelligence and cloud computing.
Market Reaction: IREN Stock Surges
After the announcement was made, IREN’s shares surged in pre-market to $73, up from Friday’s close of $60.75, a 20% gain based on investors’ excitement over the shift in strategy and lucrative contracts.
| Metric | Detail (as of Monday’s Pre-Market) |
|---|---|
| Company | Iris Energy Limited (IREN) |
| Previous Close | $60.75 |
| Current Price | $73.00 (+20%) |
| Microsoft Contract Value | $9.7 Billion |
| Dell Technologies Supply Deal | $5.8 Billion |
| Expected Completion | Through 2026 |
| Sector | AI Infrastructure / Cloud Services |
| Power Capacity | 200 MW AI Data Center Project |
Details of the Multi-Year GPU Cloud Services Contract
According to IREN’s public announcement, the arrangement with Microsoft will center around both building and deploying a fully advanced GPU cloud infrastructure to provide enhanced service levels of AI workloads at scale, model training, and enterprise workloads effectively.
Highlights of the Agreement:
- Contract Value: Approx. $9.7Billion over multiple years.
- Company: Microsoft’s Corporation.
- Infrastructure: A liquid-cooled, AI data center complex with designated infrastructure for 200 megawatts of critical IT load.
- Deployment Timeline: Deployment phases through 2026.
- Objectives: Advance Microsoft’s Azure AI and cloud service offerings.
The partnership is expected to play a significant role in expanding global AI compute capacity and supporting next generation applications in machine learning, data analytics and cloud integration in business workloads.
Dell Technologies Partnership: $5.8 Billion GPU Supply Agreement
IREN also announced a $5.8 billion separate agreement with Dell Technologies for sourcing GPUs and hardware. Dell will provide NVIDIA-powered GPUs and other fundamental components for IREN’s AI data center buildout.
This partnership will provide the reliability and scalability of IREN’s hardware to support the high-performance computing resources needed for the development of its AI infrastructure.
Why Dell’s Role Is Important:
- Hardware Supply Continuity: Provides assurance of access to GPUs when there is a global shortage.
- Technology Continuity: Supported IREN’s transition from crypto-mining to AI infrastructure.
- Scalability: Independent expansion opportunities post-2026.
- AI Data Center Complex: Powering the Future.
The recently designed liquid-cooled AI data center will support up to 200 megawatts (MW) of critical IT load — representing one of the most cutting-edge energy efficient AI data centers in design.
Key Features of the AI Data Center:
- Liquid Cooling Technology: Efficient thermal management for GPU-heavy workloads.
- Renewable Energy Source: Supports IREN’s commitment to sustainable infrastructure.
- Modular Design: Supports phased development and scalability through 2026.
- AI and HPC Support: Custom-designed for training large-scale AI models, and running GPU cloud workloads.
Leadership Insights
The agreement signifies a shift for IREN’s leadership vision. Daniel Roberts, Co-founder, and Co-CEO of IREN, stressed that they are developing the company beyond crypto mining by stating: “Our emphasis is now strategically on building scalable, sustainable AI infrastructure to support global innovation. This partnership is a validation of our long-term vision built on clean-powered digital ecosystems.”
Jonathan Tinter, Microsoft’s President of Business Development and Ventures, further endorsed the opportunity by stating, “We are excited to partner with Iris Energy to deliver next generation GPU cloud solutions. Their renewable-powered data infrastructure aligned very well with Microsoft’s commitment to sustainable-scale AI.”
IREN’s Strategic Shift: From Bitcoin to AI Infrastructure
For years, IREN was known mostly as an alternative Bitcoin mining company that was pursuing renewable energy. However, as the market has evolved, IREN recognized the growing demand for AI computing power and redirected its focus on data center development and AI workloads.
How This Shift Benefits IREN:
- Diverse Revenue Streams: No longer tied to the volatile cryptocurrency markets.
- Partnerships with Industry Leaders: Partnering with Microsoft and Dell instills global credibility.
- Alignment with AI Growth Trends: AI infrastructure market projected to surpass $400 billion by 2030.
- Improved ESG Profile: Sustainable, renewable energy-based operation that appeals to institutional investors.
- Industry Impact: Strengthening the AI Ecosystem
IREN’s shift signals a much larger trend in the market – energy-conserving AI infrastructure is emerging as the backbone of digital growth and development across the world.
With large technology companies fighting for GPU supplies and cloud computing muscle, IREN’s partnerships enable the company to be a prominent facilitator of technology and AI’s ecosystem, next to major names before-mentioned, including:
- NVIDIA (the leader in GPU technology),
- Dell Technologies (hardware and cloud integration), and
- Microsoft Azure (the AI platform and cloud capacity)
These three-party partnerships could create industry standards related to efficiency and scalability of AI data centers.
Future Outlook
IREN has promising prospects ahead as it continues to develop beyond its origins in cryptography. The alliance with Microsoft and Dell puts the company in a strong position to benefit from the rising demand for AI computing power and cloud computing.
Analyst Expectations:
- Revenue derived from AI infrastructure is projected to increase by 200-300% by 2026.
- Further momentum in equity if AI infrastructure deployment continues as predicted.
- Strong likelihood of institutional capital inflows given the sustainability element.
Conclusion
The 20% jump in the company’s shares following IREN’s $9 billion deal with Microsoft and $5.8 billion partnership with Dell Technologies represents a new turn in the company’s development. With an emphasis on AI data centers, GPU cloud infrastructure, and sustainability, IREN is becoming an increasingly important part of the future of both artificial intelligence and cloud-computing.
This development is not just a clever portfolio strategy – it is part of a vision for the next generation of digital innovation.
