IREN To Buy $1.6 Billion Nvidia Blackwell Systems From Dell Amid AI Demand Surge
IREN will purchase $1.6 billion worth of Nvidia Blackwell systems from Dell to expand AI infrastructure capacity across its Texas data centers.
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Iren has signed a $1.6 billion deal to buy Nvidia’s air-cooled Blackwell systems from Dell Technologies, in a bid to ramp up its AI infrastructure capacity more quickly.
The systems will support IREN's previously announced five-year $3.4 billion cloud AI services agreement with Dell, the company said.
IREN said the Blackwell systems will be installed at its existing data center facilities in Childress, Texas and commissioning is expected by early 2027, Reuters reported.
With the deployment, IREN’s annualised run-rate revenue is expected to increase to $4.4 billion from $3.7 billion when operational, as the company continues to scale GPU capacity to meet the rising demand for AI computing.
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GPU Capacity Expansion:
The purchase price of $1.6 billion includes GPUs, servers, storage, networking equipment, ancillary infrastructure, integration services and warranties, and payments will be made after delivery, IREN says.
Commenting on the expansion, Daniel Roberts said securing infrastructure capacity and accelerating deployment timelines remain key priorities in the rapidly expanding AI compute market.
“Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything,” Roberts said.
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The announcement comes amidst a surge in global demand for AI infrastructure driven by large-scale generative AI deployments and the adoption of advanced computing systems by enterprises.
Nvidia earlier this month said it would invest up to $2.1 billion in IREN as part of a larger deal to deploy up to five gigawatts of AI infrastructure capacity.
Microsoft also inked a $9.7 billion deal with IREN in November that includes access to Nvidia’s advanced AI chips.
The new deal underscores the intensifying competition among technology companies, cloud providers and infrastructure operators to secure AI computing capacity and advanced GPU systems as the global demand for large-scale AI workloads continues to rise.
