Cloud

Billion

<h3 id="summary">Summary</h3><ul><li>IREN delivered Horizon 1 under its $9.7 billion Microsoft agreement, providing 50 megawatts of AI computing capacity at Childress, Texas.</li><li>IREN targets 480 megawatts of AI cloud capacity in 2026 and plans to expand that figure to 1.2 gigawatts by 2027.</li><li>A $3.65 billion debt package covers 96% of IREN’s $5.81 billion GPU spending connected to the Microsoft AI infrastructure agreement.</li></ul>&nbsp; IREN has delivered the first phase of its $9.7 billion Microsoft AI cloud contract, advancing its expansion beyond Bitcoin mining. The company completed Horizon 1 at its Childress, Texas, campus with 50 megawatts of computing capacity. <a href="https://iren.com/investors/news" rel="noopener noreferrer nofollow">According to IREN</a>, the facility uses direct-to-chip liquid cooling designed to support demanding artificial intelligence computing workloads. Horizon 1 represents the first of four planned deployments under the five-year cloud services agreement between IREN and Microsoft. IREN expects to deliver Horizon 2, Horizon 3, and Horizon 4 during the remainder of 2026. Combined, the four Horizon deployments will provide 200 megawatts of IT capacity while supporting Nvidia GB300 GPUs. IREN signed the Microsoft agreement in November 2025, creating a significant commercial foundation for its growing AI infrastructure business. Additionally, Nvidia awarded Horizon 1 Exemplar Cloud status, recognizing infrastructure that meets its performance and reliability standards for AI workloads. IREN co-founder and co-CEO Daniel Roberts highlighted the company’s vertically integrated structure when announcing the completion of the first deployment. He explained that the delivery demonstrated IREN’s ability to execute complex artificial intelligence infrastructure projects at significant scale. Also Read: <a href="https://36crypto.com/bitcoin-climbs-above-64000-as-crypto-market-gains-spread-across-altcoins/" rel="noopener noreferrer nofollow">Bitcoin Climbs Above $64,000 as Crypto Market Gains Spread Across Altcoins</a> <h2 id="iren-pushes-deeper-into-ai-infrastructure">IREN Pushes Deeper Into AI Infrastructure</h2>The Microsoft deployment forms part of <a href="https://36crypto.com/iren-strengthens-ai-infrastructure-push-with-major-spain-data-center-buy/" rel="noopener noreferrer nofollow">IREN</a>‘s wider strategy to transform infrastructure originally developed around energy-intensive Bitcoin mining operations. IREN targets 480 megawatts of AI cloud capacity in 2026 as demand for high-performance computing infrastructure attracts former cryptocurrency miners. Moreover, the company plans to increase that capacity to 1.2 gigawatts by 2027 under its broader expansion strategy. Several Bitcoin mining companies have pursued similar opportunities because their existing facilities provide substantial power access and data center infrastructure. However, IREN’s Microsoft agreement gives the company a major anchor customer while supporting its transition toward artificial intelligence computing services. The arrangement also requires substantial investment because advanced AI workloads depend on expensive GPUs, cooling technology, and high-density computing infrastructure. <h2 id="3-65-billion-financing-backs-microsoft-buildout">$3.65 Billion Financing Backs Microsoft Buildout</h2>IREN secured a $3.65 billion debt package in June to finance GPUs required for its Microsoft-backed infrastructure expansion. The Microsoft contract supports the financing, which received investment-grade ratings from Fitch and DBRS during the funding process. Fitch assigned an A rating, while DBRS rated the financing A-low, strengthening IREN’s funding position for the project. Significantly, IREN reported that the package covered 96% of the $5.81 billion required for GPU spending under the Microsoft contract. Consequently, the financing reduces the immediate funding burden associated with acquiring computing hardware for the four planned Horizon deployments. The company has increasingly directed its power and infrastructure resources toward<a href="https://36crypto.com/bitcoin-miner-hive-secures-350-million-ai-cloud-deal-in-major-expansion/" rel="noopener noreferrer nofollow"> AI</a> and high-performance computing rather than relying primarily on Bitcoin mining. Meanwhile, investors responded positively to the latest operational milestone as IREN shares gained 2.6% to $45.22 on Monday afternoon. The stock reached $46.50 earlier during the session, although its year-to-date gain remained below 6%. <h2 id="conclusion">Conclusion</h2>Horizon 1 gives IREN its first completed deployment under the Microsoft agreement, while three additional phases remain scheduled for 2026. The broader buildout also supports IREN’s planned expansion toward 1.2 gigawatts of AI cloud capacity by 2027. Also Read: <a href="https://36crypto.com/bitmine-ethereum-holdings-reach-5-8m-eth-as-5-supply-target-nears/" rel="noopener noreferrer nofollow">Bitmine Ethereum Holdings Reach 5.8M ETH as 5% Supply Target Nears</a> The post <a rel="noopener noreferrer nofollow" href="https://36crypto.com/iren-delivers-first-microsoft-ai-cloud-phase-under-9-7-billion-deal/">IREN Delivers First Microsoft AI Cloud Phase Under $9.7 Billion Deal</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://36crypto.com">36Crypto</a>.

IREN Delivers First Microsoft AI Cloud Phase Under $9.7 Billion Deal

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