IREN Completes First AI Cloud Deployment for Microsoft Under $9.7 Billion Contract

Former bitcoin miner IREN has delivered the first of four planned AI cloud deployments to Microsoft as part of a five-year, $9.7 billion agreement. The initial phase, called Horizon 1, is a 50-megawatt facility using direct-to-chip liquid cooling technology, located at the company’s Texas campus. Three additional phases are expected to be completed later this year.

Full Buildout to Reach 200 Megawatts

Once all four phases are finished, the combined deployments will total 200 megawatts of IT capacity running on Nvidia’s latest GPU hardware. IREN signed the original cloud services agreement with Microsoft in November 2025.

Facility Earns Nvidia Recognition

Horizon 1 received Nvidia’s Exemplar Cloud designation, a status awarded to cloud providers that meet the chipmaker’s standards for performance and reliability when running AI workloads. IREN’s co-founder and co-CEO said the successful delivery demonstrates the company’s ability to execute complex, large-scale AI infrastructure projects on schedule, crediting the firm’s vertically integrated approach.

Company Targets Rapid Capacity Expansion

IREN is aiming to reach 480 megawatts of AI cloud capacity by the end of 2026, with plans to scale up to 1.2 gigawatts by 2027 as it continues shifting away from bitcoin mining. In June, the company secured a $3.65 billion debt financing package backed by its Microsoft contract to help fund the GPU purchases needed for the buildout. That financing received investment-grade ratings from two major credit agencies and was said to cover 96% of the $5.81 billion in GPU spending tied to the deal.

Part of a Broader Industry Shift

IREN’s pivot mirrors a wider trend among former bitcoin mining companies redirecting their power infrastructure toward AI and high-performance computing, driven by surging demand for data center capacity.

IREN shares rose 2.6% to $45.22 on Monday afternoon after touching $46.50 earlier in the session. Despite the string of major contracts, the stock remains up less than 6% for the year so far.