Microsoft IREN $9.7 Billion AI Deal: Rewiring Cloud & AI Infrastructure

Microsoft IREN $9.7 billion AI deal supercharges global cloud computing power and sustainable AI capacity. Discover how this landmark partnership leads the AI infrastructure race in 2025.

Microsoft and IREN’s $9.7 Billion Deal: Rewiring the AI Infrastructure Race

In a landmark agreement announced in late 2025, Microsoft has struck a $9.7 billion, five-year deal with IREN Ltd., an Australian-based AI cloud infrastructure provider, marking a significant shift in the global AI infrastructure landscape. This strategic partnership gives Microsoft unprecedented access to IREN’s expanding GPU cloud capacity, built primarily around Nvidia’s advanced GB300 accelerator systems at IREN’s massive 750-megawatt data center campus in Childress, Texas.

Why the Microsoft IREN $9.7 Billion AI Deal Matters

This partnership is a game-changer in several ways:

• Microsoft gets exclusive access to hundreds of megawatts of GPU computing, fast-tracking innovation and delivery in AI applications across industries.

• IREN, previously a bitcoin-mining company, pivots confidently into “neocloud” AI, maximizing its 3GW renewable-powered assets for efficient, high-density AI computation.

• The $9.7B deal alone is projected to generate up to $1.94 billion in annualized revenue for IREN, representing about 10% of its total capacity and leaving space for even more contracts.

• Investor confidence soared—IREN’s stock jumped over 20% on the news, with shares up 500% on the year amid the AI and Nvidia-led infrastructure boom.

Transforming AI Cloud Capacity with Cutting-Edge GPUs

Under the deal, Microsoft will leverage IREN’s next-generation GPU infrastructure designed to handle the massive computational demands of AI workloads, including Azure AI and GitHub Copilot services. The GPUs, supplied through a related $5.8 billion contract between IREN and Dell Technologies, will be phased in through 2026, enabling Microsoft to rapidly scale AI computing power without the long timelines and capital costs typically required to build new data centers. The inclusion of liquid-cooled data centers adds efficiency and sustainability to this infrastructure expansion.

IREN’s Evolution: From Bitcoin Mining to AI Powerhouse

IREN exemplifies the rise of “neocloud” providers, companies originally known for cryptocurrency mining that have repurposed their energy-rich, large-scale data centers for AI-optimized operations. Once focused on ASIC-based mining hardware, IREN has pivoted towards GPU-heavy, vertically integrated AI cloud services backed by renewable energy. With a 3-gigawatt portfolio of renewable-powered data centers across North America, the company is poised to emerge as a critical player in AI infrastructure.

Strategic Benefits and Industry Impact

For Microsoft, the deal solves a crucial bottleneck: meeting skyrocketing global demand for AI services amid intense competition. By securing significant cloud computing capacity rapidly, Microsoft enhances its ability to serve enterprise clients and AI innovators like OpenAI without the delays of building new facilities. For IREN, the contract guarantees steady multi-billion-dollar revenue and cements its status as a strategic partner to hyperscalers.

Investors reacted positively, with IREN’s shares surging over 20% post-announcement and rallying 500% over the year, reflecting strong market confidence in the AI infrastructure boom.

Future Implications

This deal underscores a broader industry trend where specialized AI infrastructure providers and hyperscale cloud companies form symbiotic partnerships. It also highlights the growing importance of renewable energy-powered, scalable data centers optimized for AI workloads, essential for sustainable growth in this compute-intensive field.

As AI adoption accelerates across sectors, partnerships like Microsoft and IREN’s will define the competitive contours of the AI infrastructure race, enabling faster innovation cycles, improved service reliability, and potentially reshaping the economic landscape of cloud computing and AI deployment.

Microsoft’s focus is clear: shore up Azure’s competitive edge, support generative AI such as OpenAI’s GPT, and offer enterprise clients the performance and resilience required at scale. Meanwhile, IREN cements its future as a critical enabler of AI progress, with growth fueled by major partnerships and strategic, green computing investments.

This deal is a turning point in AI infrastructure, combining advanced technology and strategic collaboration to meet the explosive demand for AI compute power globally.