IREN stock rose 4% in pre-market trading after the company announced Wednesday that it has entered into a $1.6 billion purchase agreement with Dell Technologies for air-cooled Blackwell systems, a major step in expanding its artificial intelligence infrastructure.
The new system supports IREN’s previously announced five-year, $3.4 billion managed services AI cloud contract and will be deployed across the company’s existing data center in Childress, Texas. Commissioning is scheduled for early 2027.
Once operational, IREN’s annual run-rate revenue is expected to increase from $3.7 billion to $4.4 billion, strengthening the company’s position as a growth company in AI infrastructure and cloud services.
Co-founder Daniel Roberts said speed and execution remain critical in the rapidly expanding AI market.
“In a market where compute time is everything, securing capacity and accelerating commissioning are our top priorities,” said Roberts. “Our relationship with Dell ensures we have access to hardware at the scale and speed the market demands.”
The agreement highlights the growing demand for AI computing power as hyperscalers, enterprises, and developers compete to secure infrastructure for next-generation AI workloads.
Read more: IREN co-founder says AI’s biggest bottleneck is infrastructure, not chips
