IREN Ltd., a company specializing in building and operating data centers for AI model training, has secured approximately $3.6 billion in funding to acquire Nvidia graphics processing units (GPUs). These GPUs are earmarked for use by Microsoft Corp. in a data center located in Texas. The financing was raised through two primary channels: about $2.1 billion from the sale of bonds in a private placement, and an additional $1.5 billion through project finance loans.
This substantial investment highlights the increasing demand for AI infrastructure, particularly the high-performance GPUs essential for training AI models. The deal underscores a growing trend where hyperscalers like Microsoft are partnering with specialized data center operators such as IREN to rapidly scale their AI computing capacity. IREN, which was previously known for Bitcoin mining, has successfully transitioned to become a crucial player in the AI infrastructure sector, attracting significant investments from major tech companies and financial institutions.
IREN has established a five-year, $9.7 billion contract with Microsoft to provide access to Nvidia GB300 GPU capacity, with deployment expected to be phased through 2026 at IREN's Childress, Texas campus. To facilitate this, IREN committed to purchasing GPUs and ancillary equipment from Dell for about $5.8 billion. The $3.65 billion financing facility, structured as a $2.1 billion US private placement and a $1.55 billion delayed-draw term loan, is investment-grade rated (A by Fitch and A(low) by DBRS). This financing, combined with a 20% prepayment from Microsoft, covers approximately 96% of the GPU capital expenditure for the Microsoft contract at a blended cost of debt near 6%.
Beyond Microsoft, IREN has diversified its partnerships. In May 2026, it signed a separate five-year, $3.4 billion contract with Nvidia itself to provide managed GPU cloud services for Nvidia's internal AI and research. As part of this deal, Nvidia received a five-year warrant to purchase up to 30 million IREN shares at $70 each, representing a potential $2.1 billion equity stake. By July 2026, IREN had expanded its customer base further, adding AI developers like Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, and Hume AI, raising its year-end annual recurring revenue (ARR) target to over $4 billion, with about 85% under contract.
