IREN Signs $1.6 Billion Agreement with Dell for Blackwell AI Infrastructure
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Key Takeaways
- IREN entered a $1.6 billion agreement with Dell for air-cooled Blackwell systems.
- The hardware will support a five-year, $3.4 billion AI cloud contract at the Childress, Texas campus.
- Commissioning is targeted for early 2027, with expected ARR rising to $4.4 billion.
- The purchase includes GPUs, servers, storage, and networking with post-shipment payment terms.
The $1.6 billion transaction with Dell includes GPUs, servers, storage, networking, and ancillary equipment, as well as integration services and warranties. Payment terms for the agreement are structured on a post-shipment basis, and IREN is currently advancing GPU financing in connection with the purchase.
The Blackwell systems will be deployed within existing data centers at IREN's Childress, Texas campus. Commissioning for the new hardware is targeted for early 2027. Upon commissioning, the company expects its annualized run-rate revenue (ARR) to increase from $3.7 billion to $4.4 billion.
This agreement follows IREN's May 7 announcement of a $3.4 billion managed services AI cloud contract. The company has stated that its operational model involves controlling the full stack of infrastructure, including the physical data center facilities and the compute layers.
The hardware acquisition is part of a broader capital expansion for the firm. On May 15, 2026, IREN closed a $3 billion convertible senior notes offering to fund its AI infrastructure buildout. This followed a $2 billion offering announced earlier in the month which saw a 9% decline in share price at the time of unveiling.
