IREN Ltd. (NASDAQ: IREN), an Australian data center operator, has entered into an agreement with Dell Technologies Inc. (NYSE: DELL) to purchase Nvidia’s air-cooled Blackwell systems for approximately $1.6 billion.
The acquisition is intended to service IREN’s previously announced five-year, $3.4 billion managed services AI cloud contract.
The purchase agreement covers GPUs, servers, storage, networking, ancillary equipment, integration services, and warranties, with payment terms structured on a post-shipment basis.
IREN said the Blackwell systems will be deployed across existing data centers at its Childress, Texas campus, with commissioning targeted for early 2027.
Upon commissioning, IREN expects its annualized run-rate revenue to rise to $4.4 billion from $3.7 billion, reflecting ongoing progress in bringing GPU capacity online and converting it into revenue.
The company described the purchase as part of its broader investment strategy to accelerate time-to-compute, which it identified as the defining constraint in AI at present.
IREN added that it is advancing GPU financing in connection with the deal, consistent with its approach to prior hardware deployments.
Daniel Roberts, Co-Founder and Co-CEO of IREN, stated, “Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything.”
Roberts added, “Hyperscalers, enterprises and developers choose IREN as a partner because we own and control the full stack – the physical infrastructure, the compute, and the operational capability to deploy at scale.”
He continued, “Our relationship with Dell ensures access to hardware at the scale and speed the market demands.”
In early May, AI chipmaker Nvidia announced a deal to invest up to $2.1 billion in IREN as part of a broader agreement to deploy up to 5 gigawatts of infrastructure to meet surging demand for AI.
In overnight trading, IREN shares were gaining 0.07 percent at $59.82, following a 5.2 percent gain during Tuesday’s regular session.
