Blue Owl and PIMCO Lend Iren $3.4B for Nvidia Chips
Synopsis
Iren has secured $3.4 billion in financing led by Blue Owl and PIMCO to fund Nvidia chips for its Canadian data centre project, with the deal covering 90% of the chip costs.
Iren Secures Major Financing
Sydney-based Iren has secured US$2.4 billion ($3.4 billion) in financing led by Blue Owl to buy high-end Nvidia chips for its data centre project in Canada.
The deal was described as “unique” and one of the largest of its kind by Kurt Tenenbaum, a senior managing director at Blue Owl.
Financing Covers Most GPU Costs
Blue Owl and PIMCO are covering 90% of the cost of Nvidia Blackwell Ultra chips for Iren’s Canadian data centre project.
The deal combines equipment financing with direct lending. The debt will mature two and a half years after it is drawn and carries a 9% interest rate.
Extra Funding for Data Centre
The financing, together with payments made in advance by customers, provides more money than the cost of the chips.
This allows Iren to use some of the funds for other data centre spending. A separate $3.6 billion financing deal linked to a Microsoft contract carries a lower 6% interest rate.
Growing Support for Data Centres
Blue Owl has supported major data centre projects, including Meta’s Hyperion project in Louisiana. PIMCO is one of the world’s largest investment managers focused on bonds and similar investments.
The deal shows that lenders are willing to support data centre projects even without major companies such as Nvidia or Microsoft backing the debt.
Iren Sees Strong Demand
Iren co-chief executive Daniel Roberts said major customers such as Microsoft can provide cheaper financing, while other AI companies offer higher payments and advance funding.
He said customers are increasingly helping finance Iren’s expansion, which shows strong demand for data centre capacity.
Sources: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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