Microsoft Inks $9.7B Deal with Australia’s IREN for AI Cloud Capacity
Microsoft has announced a massive $9.7 billion agreement with Australia’s IREN to enhance its global AI cloud infrastructure. This five-year partnership aims to meet the surging demand for AI compute power across Azure and other Microsoft services. The deal includes Nvidia’s cutting-edge GB300 GPUs, signaling Microsoft’s aggressive push to dominate the AI cloud market in 2025 and beyond.
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What Does the Microsoft–IREN Deal Mean for AI Cloud Growth?
The partnership gives Microsoft access to IREN’s large-scale data center in Childress, Texas, which is set to host 750 megawatts of capacity. With Nvidia’s GB300 GPUs at its core, the facility will strengthen Azure’s ability to handle AI reasoning models, agentic systems, and multimodal generative AI. This expansion supports Microsoft’s strategy to lead the global race for AI cloud dominance against Amazon, Google, and Oracle.
How Does This Deal Impact Microsoft’s AI Infrastructure?
The $9.7 billion deal adds to Microsoft’s recent streak of AI infrastructure investments. Just last month, the company partnered with Nscale to deploy 200,000 Nvidia GB300 GPUs across the U.S. and Europe. By securing partnerships with firms like IREN and Nscale, Microsoft ensures it can keep up with exploding enterprise and developer demand for high-performance AI computing. These collaborations help Azure maintain reliability, scalability, and energy efficiency.
Why Did IREN Shift from Bitcoin Mining to AI Cloud?
Originally a bitcoin-mining company, IREN pivoted toward AI cloud computing as demand for GPU-based workloads surged. Leveraging its existing infrastructure, IREN has become a major player in the AI cloud sector. CEO Daniel Roberts confirmed that the Microsoft deal will account for only 10% of IREN’s total capacity yet is expected to generate about $1.94 billion annually—highlighting the immense profitability of the AI compute market.
What’s Next for Microsoft’s AI Expansion Strategy?
Microsoft’s collaboration with IREN demonstrates its long-term commitment to building an AI-first cloud ecosystem. With continued investment in high-capacity GPU clusters and sustainable data centers, the company is poised to deliver faster, more reliable AI services across the globe. As enterprises increasingly adopt generative AI tools, Microsoft’s proactive capacity expansion ensures it remains ahead in the AI infrastructure race.
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