Iris Energy (IREN) shares soared more than 25% on Monday after the company announced a $9.7 billion cloud services agreement with Microsoft, marking one of the most significant deals in the AI infrastructure sector this year.
$9.7 Billion Deal to Power AI Cloud Expansion
The agreement positions Iren, an Australia-based data center and renewable energy company, as a key partner in Microsoft’s global AI cloud expansion.
Under the deal, Iren will provide large-scale data center capacity and AI computing services powered by Nvidia GPUs, helping Microsoft meet surging demand for artificial intelligence workloads across Azure.
According to reports, Microsoft’s decision to partner with Iren underscores its growing focus on sustainable AI infrastructure, as Iren’s facilities are powered by renewable energy sources such as hydroelectricity.
This aligns with Microsoft’s broader goal of achieving carbon-negative operations by 2030.
Market Reaction: Iren Stock Jumps
Following the announcement, IREN stock surged over 25%, reflecting strong investor enthusiasm for the company’s strategic shift from bitcoin mining to AI-driven cloud computing.
The deal signals a new era for Iren, which has been repositioning itself as a renewable-powered AI infrastructure provider rather than a pure-play crypto miner.
Partnerships with Dell and Nvidia
In addition to the Microsoft agreement, Iren recently revealed collaborations with Dell for server infrastructure and Nvidia for GPU-based computing solutions.
These partnerships reinforce Iren’s position in the fast-growing AI data center market, estimated to exceed $100 billion globally by 2030.
Industry analysts suggest that Iren’s renewable-powered facilities offer a competitive edge, helping major cloud providers meet sustainability targets while scaling AI computing power efficiently.
A Strategic Shift Toward the Future of AI
Iren’s evolution from cryptocurrency mining to AI data centers reflects a broader industry trend — the pivot toward high-performance, energy-efficient computing.
With the Microsoft contract in hand, the company is expected to accelerate development of new data center sites across North America and other key regions.
Analysts say this partnership could transform Iren’s revenue profile, making it one of the emerging players in the green AI infrastructure ecosystem.
Bottom Line
The $9.7 billion Microsoft deal marks a turning point for Iris Energy, reinforcing its transition into the AI era.
As demand for AI computing capacity continues to surge, Iren’s sustainable approach could make it a long-term winner in the race to build the next generation of cloud infrastructure.
Also Read
Kimberly-Clark–Kenvue Merger: Inside the $48.7 Billion Deal Transforming Everyday Essentials
Netflix Announces 10-for-1 Stock Split: What It Means for Investors and Employees