IREN shares jumps on $1.6 billion Dell deal to expand AI cloud business
Key takeaways
- The new systems will support IREN’s previously announced five-year, $3.4 billion managed services AI cloud contract and are expected to be deployed across the company’s existing data centers in Childress, Texas.
- Co-founder Daniel Roberts said speed and execution remain critical in the rapidly expanding AI market.
- “Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything,” Roberts said.
The systems will be deployed at IREN’s Childress, Texas facilities, strengthening its ability to meet growing demand for AI compute capacity.Upon commissioning, the AI cloud contract is expected to increase IREN’s annualized run-rate revenue from $3.7bn to $4.4bn.IREN shares rose 4% in pre-market trading after the company entered a $1.6 billion purchase agreement with Dell Technologies for air-cooled Blackwell systems, a major step in scaling its artificial intelligence infrastructure, the company said on Wednesday.
The new systems will support IREN’s previously announced five-year, $3.4 billion managed services AI cloud contract and are expected to be deployed across the company’s existing data centers in Childress, Texas. Commissioning is targeted for early 2027.
Once operational, the AI cloud contract is projected to increase IREN’s annualized run-rate revenue from $3.7 billion to $4.4 billion, reinforcing the company’s position as a growing player in AI infrastructure and cloud services.