IREN surges record high after Microsoft deal
IREN has landed one of the biggest AI infrastructure deals with Microsoft by locking in billions for access to its data centres which has set the stage for massive growth ahead.
IREN Limited (NASDAQ: IREN)
IREN Limited has announced a major step by signing a large multi-year AI cloud agreement with Microsoft for access to NVIDIA GB300 GPU infrastructure and the deal covers dedicated GPU capacity across four data centres at its Horizon campus in Childress, Texas and will run over an average five-year term.
The agreement has a total contract value of about US$9.7 billion through 2031 with Microsoft paying 20% of each tranche upfront ahead of deployment and service commencement.
To support the contract IREN also entered into a US$5.8 billion purchase agreement with Dell to supply the GPUs and related infrastructure, deliveries will roll out from 2026 in several tranches and contract includes products, services and deployment support.
The GPU capacity for Microsoft will be installed across Horizon 1 to Horizon 4, representing 200MW of high-density AI data centre capacity at the Childress campus and these facilities will use advanced liquid-cooling design.
The company expects to fund the capital expenditures through a mix of existing cash, customer prepayments, operating cash flow and financing initiatives.
With a vertically integrated build capability and control over power infrastructure IREN aims to keep margins strong and capture scale benefits as deployment accelerates.
Beyond the Microsoft agreement the company also sees room to expand into the remaining 450MW of available power capacity at Childress for future AI cloud deployments and internal planning is already underway for converting even more of the 750MW campus into liquid-cooled GPU-ready sites as demand grows.
In Q4 FY25, IREN delivered record revenue of US$187.3 million and an adjusted EBITDA of US$122 million as margins and efficiency improved sharply.
With a secured customer pipeline, a contract in hand worth billions and construction already progressing across multiple phases, IREN is one of the most ambitious AI infrastructure builders in North America.
(Source: Company Announcements)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
