IREN Clears Major Hurdle in AI Expansion Plans with Microsoft Deal

IREN Ltd., a data-center operator that has built its business on Bitcoin mining, has passed a significant test in its AI expansion plans. The company's Horizon 1 data center, developed under a $9.7 billion five-year contract with Microsoft Corp., has been officially approved by Microsoft. This approval is crucial as it paves the way for IREN to start generating revenue from the project.

The approval also comes with another vote of confidence in performance and reliability, as Nvidia Corp.'s computers with GB300 were operating at the site, earning Exemplar Cloud status. IREN has already secured a $3.65 billion loan package connected to the Microsoft contract, which should help cover GPU spending.

The company's AI business is still relatively small compared to its Bitcoin mining operations, but growth in this area comes with significant cash requirements. However, investors are no longer just waiting for IREN to announce large-scale AI acquisitions; they're starting to see those deals turn into operational infrastructure and revenue-generating assets.