Iren strikes $10bn AI deal with Microsoft, shares surge

Shares in Iren soared on Monday, after the data centre operator struck a $9.7bn AI cloud services deal with Microsoft.

Under the terms of the five-year contract, Irene will provide Microsoft with access to Nvidia’s advanced GB300 GPUs.

Iren has also entered into an agreement with Dell Technologies to purchase the chips and ancillary equipment for around $5.8bn.

The chips are expected to be deployed in phases through 2026 at Iren’s data facilities in Childress, Texas.

Daniel Roberts, co-founder and joint chief executive, said the deal was a "milestone partnership" for the firm.

He continued: "This agreement not only validates Iren’s position as a trusted provider of AI cloud services, but also opens access to a new customer segment among global hyper-scalers."

Jonathan Tinter, president of business development and ventures at Microsoft, said: "Microsoft is delivering cutting-edge AI infrastructure for our customers.

"Iren’s expertise in building and operating a fully-integrated AI cloud - from data centres to GPU stack - combined with their secure power capacity makes them a strategic partner."

As at 1230 GMT, Iren’s Nasdaq listed shares had soared 22% in pre-market trading.

Dell was up 4%, while Microsoft was ahead 1%.

Tech companies are rushing to take advantage of the global AI boom, but capacity shortages are holding many back. AI requires vast amounts of both capacity and energy.

By partnering with Iren, Microsoft has opted to expand its own capacity without building its own data centres or securing additional power sources.

Iren - which was founded in 2018 as Iris Energy by Roberts and his brother William - has multiple data centres across North America, which it powers using renewable energy.