IREN shares rose 4% in premarket trading after the company signed a $1.6 billion purchase agreement with Dell Technologies for Blackwell air-cooled systems, a major step in expanding its artificial intelligence infrastructure, the company said Wednesday.
The new systems will support IREN’s previously announced five-year, $3.4 billion cloud AI managed services contract and are expected to be deployed in the company’s existing data centers in Childress, Texas. Commissioning is planned for early 2027.
Once operational, the AI cloud contract is expected to increase IREN’s annualized revenue from $3.7 billion to $4.4 billion, reinforcing the company’s position as a growing player in AI infrastructure and cloud services.
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 compute time is everything,” Roberts said. “Our relationship with Dell ensures access to hardware at the scale and speed the market demands.”
The deal highlights growing demand for AI computing capacity as hyperscalers, enterprises and developers compete to secure infrastructure for next-generation AI workloads.
Read more: IREN co-founder says AI’s biggest bottleneck is infrastructure, not chips
