Australian data center operator IREN Ltd. (IREN) announced that it has entered into an agreement with Dell Technologies Inc. (DELL) to buy Nvidia's air-cooled Blackwell systems for approximately $1.6 billion.
With the purchase, the vertically integrated AI Cloud provider aims to service its previously announced five-year, $3.4 billion managed services AI cloud contract.
The purchase agreement includes GPUs, servers, storage, networking, ancillary equipment, integration services, and warranties. The payment terms are structured on a post-shipment basis.
In a statement, IREN said the Blackwell systems will be deployed across existing data centers at the company's Childress, Texas campus, with commissioning targeted for early 2027.
Upon commissioning, the company expects the AI cloud contract to increase IREN's annualized run-rate revenue or ARR to $4.4 billion from from $3.7 billion, reflecting its ongoing progress in bringing GPU capacity online and converting it into revenue.
The company noted that the purchase is part of its ongoing investment to accelerate time-to-compute, the defining constraint in AI at present.
IREN added that it is advancing GPU financing in connection with the deal, consistent with its approach to prior hardware deployments.
Daniel Roberts, Co-Founder & Co-CEO of IREN, stated, "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."
In early May, AI chipmaker Nvidia announced a deal to invest up to $2.1 billion in IREN as part of a broader deal to deploy up to 5 ?gigawatts of infrastructure to keep up with the surging demand for AI.
In the overnight trading, IREN shares were gaining 0.07 percent, at $59.82, after closing Tuesday's regular trading 5.2 percent higher.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.