Shares of IREN Ltd. (NASDAQ: IREN) jumped sharply on Monday after the company announced a landmark five-year, $9.7 billion contract with Microsoft Corp. to deliver advanced AI cloud infrastructure powered by NVIDIA GB300 GPUs at its massive Texas campus. The deal marks a major leap for the Sydney-based data-infrastructure company as it pivots from its roots in high-performance computing and digital infrastructure toward becoming a core provider for hyperscale AI workloads.
Under the agreement, IREN will supply Microsoft with large-scale AI compute capacity built around NVIDIA’s latest GPUs, deployed at its 750 MW Childress, Texas campus, which includes about 200 MW of new liquid-cooled data-center capacity, according to Reuters. Microsoft will make a 20% upfront payment, helping IREN fund the build-out and reduce financing risk, AP News reported.
IREN has also signed a $5.8 billion hardware procurement agreement with Dell Technologies, covering GPUs and supporting infrastructure needed to fulfill the Microsoft contract, according to Investor’s Business Daily.
The stock soared more than 20% in early trading, making it one of the day’s top-moving technology shares, according to Barron’s. Analysts described the partnership as a “game-changing” moment for IREN, giving it validation as a credible hyperscale infrastructure provider to top-tier clients, MarketWatch noted.
Before this announcement, IREN had already secured multi-year AI cloud contracts covering around 11,000 GPUs—about half of its total fleet—with an estimated $225 million in annual recurring revenue (ARR) expected by late 2025, according to Market Chameleon. The company has projected over $500 million in ARR once its full 23,000-GPU deployment is online by early 2026, per Stock Titan.
While the Microsoft deal could transform IREN’s scale and profile, analysts cautioned that the contract’s success hinges on timely infrastructure delivery and careful financing. According to Reuters, Microsoft’s payments are contingent on IREN meeting strict deployment milestones. The company’s $5.8 billion hardware outlay also introduces heavy capital-intensity and potential execution risk.
IREN’s growing dependence on a single major customer may pose concentration risk, while any delays in GPU supply chains, energy costs, or regulatory shifts in Texas could affect project economics.
Despite those risks, the market’s reaction signals strong confidence that IREN has entered a new phase. With Microsoft as an anchor client, the company is positioned to become a major infrastructure player in the rapidly expanding AI computing sector. “This deal elevates IREN from a niche data-infrastructure firm to a credible hyperscaler partner,” one analyst told MarketWatch.
At last check, IREN stock traded at $60.75, up 4.4% on the day.
The post IREN Stock Update: Data Company Shares Surge After Inking Massive Microsoft Deal appeared first on International Business Times.
