IREN (IREN), which has successfully transformed from a Bitcoin mining enterprise into a large-scale AI data center operator, recently announced that it has agreed to purchase Nvidia’s air-cooled Blackwell architecture AI computing systems from Dell Technologies for approximately $1.6 billion. The move aims to bring more AI computing resources online to keep pace with the globally surging demand for AI infrastructure.
This transaction serves IREN’s previously announced five-year, $3.4 billion cloud computing AI computing services contract with Dell. Daniel Roberts, Co-CEO of IREN, stated that in a market where “time-to-live for computing power is everything,” securing sufficient AI infrastructure capacity and accelerating its operational deployment is the company’s top priority.
IREN’s blockbuster procurement is seen as another signal of “continuously exploding global AI computing power demand.” The four major tech giants—Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Google parent Alphabet (GOOG)—have all signaled the same in their latest earnings reports: the AI infrastructure arms race is far from over. Their combined capital expenditures for 2026 will total at least approximately $725 billion, far exceeding 2025 spending levels and Wall Street’s latest expectations. These tech giants would rather endure pressure on cash flow and profit margins than fall behind in the computing race.
Nvidia’s latest earnings also clearly highlight that the global AI infrastructure construction frenzy is expanding from AI GPUs to data center CPUs, high-performance networking infrastructure, enterprise-grade storage, entire server clusters, and large-scale AI cloud computing systems.
Bitcoin mining firms transitioning to AI data centers have clear advantages over cloud giants building from scratch: computing infrastructure, power, and sites are already largely in place, including existing network points, substations, and usable campuses. With renovations or minor upgrades, these can be put into operation, while multi-year AI contracts can solidify cash flow.
According to IREN’s forecast, once the actual contract is operational, it is expected to raise IREN’s annualized recurring revenue from $3.7 billion to $4.4 billion. These Blackwell AI computing systems will be deployed within IREN’s existing data center at its large-scale campus in Childress, Texas, and are expected to be ready by early 2027. The $1.6 billion purchase price covers all infrastructure equipment and computing system services, including AI GPU series products, server equipment, storage components, high-performance networking infrastructure, auxiliary equipment, integration services, and warranty services, with payment to be made after delivery.
Earlier this month, Nvidia stated that, as part of a transaction to deploy up to 5 gigawatts of AI computing infrastructure, it would invest up to $2.1 billion in IREN. IREN has agreed to grant Nvidia a five-year warrant to purchase up to 30 million shares at an exercise price of $70 per share. The two parties will also jointly deploy billions of dollars’ worth of computing power.
In November last year, Microsoft reached an agreement with IREN valued at up to $9.7 billion, which includes priority access to Nvidia’s most advanced AI computing clusters. IREN’s stock price has risen as much as 60% so far this year, with a total gain of 285% for the full year 2025.
