IREN spends $1.6 billion to purchase Nvidia Blackwell systems from Dell
Source: Global Market Broadcast
Data Center operator IREN announced on Tuesday that it has agreed to purchase Nvidia air-cooled Blackwell systems from Dell for approximately $1.6 billion, aiming to bring more computing power online to meet the growing demand for artificial intelligence.
IREN stated in a press release that this deal is to fulfill the previously announced five-year cloud artificial intelligence services contract with server manufacturer Dell, valued at $3.4 billion.
These Blackwell systems will be deployed at IREN’s existing data center in Childress, Texas, and are expected to be put into operation in early 2027.
After the contract takes effect, IREN’s annual recurring revenue (ARR) is expected to rise from $3.7 billion to $4.4 billion, reflecting continued progress in its GPU capacity going online.
IREN stated that the $1.6 billion purchase price covers all equipment and services, including GPUs, servers, storage, network, auxiliary equipment, integration services, and warranties, with payments to be made upon delivery.
IREN’s Co-CEO Daniel Roberts said: “In a market where computing speed is critical, securing capacity and accelerating commissioning are our top priorities.”
In addition, Nvidia announced earlier this month that it would invest up to $2.1 billion in IREN, as part of a broader agreement between the two parties aimed at deploying up to 5 gigawatts of infrastructure.
In November last year, Microsoft reached a $9.7 billion agreement with IREN, which included access to Nvidia’s advanced chips.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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