IREN, a Nasdaq-listed data centre operator, is set to deliver Nvidia GB300 graphics processing unit (GPU) capacity to Microsoft under a multi-year cloud services deal worth $9.7bn.

The five-year contract calls for a 20% prepayment to IREN.

As part of this arrangement, IREN will source GPUs and related equipment through a purchase agreement with Dell Technologies, valued at around $5.8bn.

The deployment is scheduled in stages through 2026 at IREN’s Childress, Texas facility, which is expected to support up to 200MW of IT load across several project phases identified as Horizon 1 to 4.

IREN plans to meet the capital requirements for these deployments by drawing on current cash balances, customer prepayments, operational cashflows, and additional financing options.

Microsoft business development and ventures president Jonathan Tinter said: “Together with IREN, Microsoft is delivering cutting-edge AI infrastructure for our customers.

“IREN’s expertise in building and operating a fully integrated AI cloud — from data centres to GPU stack — combined with their secured power capacity makes them a strategic partner.”

IREN operates as an AI cloud service provider, delivering GPU clusters intended for large-scale AI training and inference.

The company maintains a network of grid-connected land and data centres in regions of the US and Canada with access to renewable energy resources.

IREN co-founder and co-CEO Daniel Roberts said: “We’re proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform.

“This agreement not only validates IREN’s position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers.”

Separately, as major energy and technology conferences take place in Abu Dhabi and Dubai, Microsoft detailed its ongoing and planned investments in the United Arab Emirates (UAE).

Since launching an AI initiative in partnership with G42 around two and a half years ago, with support from both the US and UAE governments, Microsoft stated it will invest $15.2bn in the UAE from the start of 2023 through to the end of 2029.

Microsoft has disclosed that its investments in 2023 and 2024 are expected to total just over $7.3bn, which includes a $1.5bn equity investment in G42.

Additionally, more than $4.6bn is allocated for capital expenditure on advanced AI and cloud data centres in the country, with over $1.2bn set aside for local operating costs and cost of goods sold.

For the period between 2026 and the end of 2029, Microsoft projects spending more than $7.9bn in the UAE, with over $5.5bn directed at expanding AI and cloud infrastructure and almost $2.4bn planned for local operating expenses and cost of goods sold.