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Investing.com -- Shares of IREN Limited, an AI cloud service provider, are trading nearly 20% higher in pre-market trading on Monday after the company announced a major cloud services deal with Microsoft.
The multi-year contract, valued at approximately $9.7 billion over five years, will provide Microsoft with access to NVIDIA GB300 GPUs. The agreement includes a 20% prepayment from Microsoft.
In conjunction with this deal, IREN has entered into a separate agreement with Dell Technologies to purchase the GPUs and related equipment for approximately $5.8 billion.
IREN plans to deploy these GPUs in phases throughout 2026 at its 750MW facility in Childress, Texas. The company will also develop new liquid-cooled data centers supporting 200MW of critical IT load across four phases.
To fund these capital expenditures, IREN intends to use existing cash, customer prepayments, operating cash flows, and additional financing initiatives.
"We’re proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform," said Daniel Roberts, Co-Founder and Co-CEO of IREN.
IREN offers GPU clusters for AI training and inference through data centers located in renewable energy regions across the United States and Canada.