IREN expands AI capacity with $1.6B Dell Blackwell deal
Synopsis
IREN has agreed to purchase Nvidia Blackwell AI systems from Dell Technologies in a $1.6 billion deal tied to expanding AI infrastructure operations. The agreement comes as global spending on AI data centers and GPU cloud services accelerates, with technology companies increasing investment in computing capacity supporting artificial intelligence workloads worldwide.
IREN will deploy Nvidia Blackwell AI systems from Dell at its Texas campus as global demand for AI infrastructure and GPU computing capacity continues increasing across technology markets.
Key Highlights
- IREN signed a $1.6 billion agreement with Dell for Nvidia Blackwell AI systems.
- The systems will be deployed at the company’s Texas AI data center campus by 2027.
- IDC projects global AI infrastructure spending could exceed $200 billion by 2028.
- IREN’s AI cloud services revenue rose to $16.4 million during fiscal 2025.
IREN has inked a $1.6 billion deal with Dell Technologies for Nvidia's Blackwell AI systems as worldwide investment in AI infrastructure keeps growing.
The systems will be installed at IREN's Childress, Texas site and are planned to start up in early 2027. The agreement includes GPUs, servers, networking equipment, storage systems and related support services.
IREN claimed that the Nvidia Blackwell AI systems will be used to power its announced five-year AI cloud services agreement with Dell worth $3.4 billion.
AI investment continues to rise
The agreement follows, on top of other recently announced investments by technology firms in new AI computing power, after the surge in interest in generative AI services and large language models.
According to the latest Worldwide AI Infrastructure Tracker from research firm IDC, global AI infrastructure spending will hit more than $200 billion by 2028. Nvidia has been at the heart of that growth, with its high-end AI chips being in greater demand than supply in cloud and enterprise environments.
In a statement, Nvidia had also said earlier this month it would be involved in infrastructure projects with up to five gigawatts of data center capacity connected to IREN operations.
Data centers shift toward AI workloads
From its initial Bitcoin mining operations, IREN has gradually expanded to offer AI cloud infrastructure and GPU computing services. The company's fiscal 2025 revenue is approximately $501 million, up from $187.2 million a year ago.
Growth in AI cloud services also led to a significant increase in revenue, reaching $16.4 million compared to $3.1 million last year.Demand for AI processing infrastructure also saw growth with revenue from AI cloud services reaching $16.4 million, up from $3.1 million last year.
In a separate report, Microsoft inked a five-year deal with IREN valued at $9.7 billion based on the use of Nvidia's AI chips and associated services and infrastructure.
Texas is becoming one of the major hubs for large data center campuses for AI due to its power capacity and its reduced operating costs compared to some coastal markets.
Dell’s AI Server Business Expands
Dell Technologies also saw better demand on the back of AI server deployments. Dell reported $27 billion in revenue for its fiscal third-quarter 2026 and beefed up its full-year AI server shipment guidance to approximately $25 billion.
That is why Nvidia Blackwell AI systems are being deployed by increasingly more cloud providers, enterprise software companies, as well as data center operators and operators, leading to the competition of advanced GPU infrastructure worldwide.
FAQs
Q1. Why is IREN buying Nvidia Blackwell AI systems from Dell?
IREN is expanding AI computing capacity to support growing demand for GPU cloud and AI infrastructure services.
Q2. Where will the Nvidia Blackwell AI systems be deployed?
The systems will be installed at IREN’s Childress, Texas data center campus by early 2027.
Q3. Why are Nvidia Blackwell AI systems attracting major investments?
The chips are being widely used for generative AI models, cloud computing and large-scale AI processing workloads.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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