IREN Limited’s AI Expansion Fueled by $9.7B Microsoft Deal Amid Record Revenue Growth

IREN Limited (NASDAQ: IREN) has unveiled a transformative $9.7 billion agreement with Microsoft, accelerating its push into high-performance AI infrastructure. The five-year contract includes phased deployments at the Childress site, backed by a 20% prepayment, and is projected to contribute $1.9 billion in annualized recurring revenue. This strategic MOVE aligns with IREN's shift toward liquid-cooled data centers optimized for AI workloads, with plans to deploy 140,000 GPUs by late 2026.

The company's Q1 FY26 financial results showcased a 355% revenue surge, marking a record-breaking quarter. Despite this, IREN's stock declined 12.37% to close at $66.96. The Microsoft deal, alongside partnerships with Together AI, Fireworks AI, and Fluidstack, positions IREN to exceed $500 million in AI Cloud annualized recurring revenue by early 2026. With 3GW of grid-connected power capacity, the company retains significant room for scaling its AI infrastructure.

IREN's cash reserves are now directed toward next-generation AI builds, reinforcing its role as a hyperscale player. The GPU-centric strategy and cloud-focused contracts signal a deliberate pivot from traditional data center operations to high-margin AI services.