Shares of IREN Limited (NASDAQ:IREN) rose 4.6% in premarket trading on Wednesday after the company disclosed a $1.6 billion purchase agreement with Dell for air-cooled Blackwell systems.
The purchase is intended to provide the hardware foundation for IREN’s previously announced five-year, $3.4 billion managed services AI cloud contract. According to the company, the procurement covers a broad array of components and services - including graphics processing units (GPUs), servers, storage and networking hardware, ancillary equipment, integration services and warranties. Payment terms for the transaction are arranged on a post-shipment basis.
IREN plans to deploy the Blackwell systems at its Childress, Texas campus data centers. The company has set a target to commission the new capacity in early 2027. Once the systems are commissioned, IREN expects the AI cloud contract to lift its annualized run-rate revenue from $3.7 billion to $4.4 billion.
Management described the transaction as part of a broader investment to accelerate what the company called time-to-compute. In connection with the Dell agreement, IREN is advancing GPU financing, a step the company said aligns with its approach to prior hardware rollouts.
Daniel Roberts, Co-Founder and Co-CEO of IREN, emphasized that securing capacity and speeding commissioning are top priorities, noting that time-to-compute remains a key constraint in the market. Roberts also highlighted that IREN owns and controls the full infrastructure stack - encompassing physical infrastructure, compute, and operational capabilities - which the company says enables deployment at scale.
This report presents the company-stated details of the transaction, planned deployment and near-term revenue implications as released by IREN.