IREN Agrees to Buy $1.6 Billion of Nvidia Blackwell Systems From Dell for AI Cloud Expansion

Data center operator IREN Limited has entered into a purchase agreement with Dell Technologies to acquire air-cooled Nvidia Blackwell systems valued at approximately $1.6 billion.

Credit: Nvidia

The deal, announced on May 26, supplies hardware for a previously disclosed five-year managed services AI cloud contract worth $3.4 billion.

The systems will deploy at IREN’s existing facilities on its Childress, Texas campus. Commissioning is scheduled for early 2027.

Once operational, the additional capacity is expected to raise the company’s annualized run-rate revenue to $4.4 billion from the current $3.7 billion.

The total purchase price covers GPUs, servers, storage, networking equipment, ancillary components, integration services, and warranties.

Payments are structured on a post-shipment basis, with installments due within 30 days of each delivery tranche.

IREN is advancing financing arrangements for the GPUs, following its established approach in earlier hardware deployments.

The company’s subsidiary IE US Hardware signed the agreement, backed by an unconditional guarantee from IREN Limited.

This transaction builds on IREN’s shift from its origins in Bitcoin mining toward large-scale AI infrastructure.

The company has secured multiple high-value cloud services agreements in recent months, including a separate $9.7 billion multi-year deal with Microsoft announced in November 2025 that involves NVIDIA GB300 GPUs across phases at the same Childress site.

Daniel Roberts, co-founder and co-CEO of IREN, said in the company’s statement:

“Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything. Hyperscalers, enterprises and developers choose IREN as a partner because we own and control the full stack — the physical infrastructure, the compute, and the operational capability to deploy at scale. Our relationship with Dell ensures access to hardware at the scale and speed the market demands.”

The Blackwell systems represent Nvidia’s latest generation architecture, optimized here in air-cooled configurations suitable for IREN’s current Texas data center infrastructure.

The hardware will support managed AI cloud services under the $3.4 billion contract, addressing demand for training and inference workloads.

IREN has emphasized its vertically integrated model, controlling power, facilities, and operations, as a differentiator in a sector where delivery timelines often constrain growth.

IREN shares rose following the announcement, with reports indicating gains of around 4 to 5% in after-hours and pre-market trading on May 26.

The move comes as the company continues to expand its GPU fleet and convert deployed capacity into contracted revenue.

Earlier expansions included smaller Blackwell purchases, such as a 2.4k GPU order in mid-2025, but the latest Dell agreement marks one of its largest single hardware commitments to date.

Power availability remains a key factor in IREN’s expansion plans at Childress.

The site benefits from existing infrastructure that allows faster deployment compared to greenfield projects.

The company has highlighted that pre-powered capacity positions it to meet client timelines more effectively than competitors facing longer grid interconnection delays.

The agreement with Dell does not alter the overall terms of the $3.4 billion AI cloud contract it supports.

It provides the physical compute layer for services already contracted, with revenue recognition tied to commissioning and operational availability.

IREN has indicated it continues to pursue additional financing options to support its broader growth pipeline while maintaining its focus on rapid execution.