Hustler Words – Microsoft is aggressively expanding its AI cloud capabilities, securing a massive $9.7 billion, five-year agreement with Australian firm IREN. The deal, announced Monday, will bolster Microsoft’s access to crucial compute infrastructure powered by Nvidia’s cutting-edge GB300 GPUs. This strategic move underscores Microsoft’s commitment to meeting surging customer demand for its AI services.
The infrastructure will be strategically deployed in phases throughout 2026 at IREN’s Texas facility, located in Childress, which is designed to support a substantial 750 megawatts of capacity. IREN is independently investing roughly $5.8 billion in GPUs and related equipment from Dell, showcasing the scale of this build-out.
This agreement follows Microsoft’s recent launch of its initial production cluster featuring Nvidia’s GB300 NVL72 systems for Azure. These systems are specifically optimized for demanding workloads like reasoning models, agentic AI systems, and multi-modal generative AI, positioning Microsoft at the forefront of AI innovation. In addition to the IREN deal, Microsoft also inked a deal last month with Nscale for approximately 200,000 Nvidia GB300 GPUs across three data centers in Europe and one in the U.S., further solidifying its AI infrastructure.
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IREN, like competitors such as CoreWeave, initially focused on bitcoin mining. However, the company recognized the superior potential of its extensive GPU resources for AI workloads. This strategic shift has proven highly lucrative. According to a Bloomberg report, IREN CEO Daniel Roberts anticipates that the Microsoft contract will utilize only 10% of IREN’s total capacity while generating approximately $1.94 billion in annualized revenue. This highlights the significant growth opportunities within the AI infrastructure sector.
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