Microsoft Strikes $9.7 Billion Deal With IREN for AI Computing Power — Update

By Adriano Marchese

Microsoft has secured new computing power capacity with a $9.7 billion deal with IREN as big tech races to expand data center capacity across the U.S.

Under the five-year agreement, Microsoft will gain access to IREN's Nvidia GB300 chips, giving it access to more data processing power as the tech giant scales its artificial intelligence services.

To support the new demand, IREN made a separate agreement with Dell Technologies to purchase new graphics processing units as well as related equipment for $5.8 billion. The hardware is expected to be rolled out in phases throughout the next year at IREN's Texas campus in Childress.

Shares of data center operator IREN rose in premarket trading Monday, trading 22% higher ahead of the morning bell at $73.98.

In the U.S., data centers have become increasingly critical to power the artificial intelligence boom. Tech giants like Microsoft, Amazon, and Google are spending tens of billions of dollars to build massive new facilities to house the thousands of power-hungry GPUs required to train and run AI models.

The rapid buildout has also created a strain, including from a shortage of GPUs to process the data, and the need for electricity to run it all.

Microsoft has said it plans to double its data-center footprint over the next two years to keep pace with soaring demand for cloud and computing services. It now plans to spend more than previously projected on its AI infrastructure this fiscal year.

Recently, Microsoft signed a deal with Nscale to provide about 200,000 Nvidia AI processors in Europe and also committed $17.4 billion over five years for a similar GPU infrastructure deal from Dutch company Nebius for a new data infrastructure capacity in Vineland, N.J.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 03, 2025 07:52 ET (12:52 GMT)