NVIDIA IREN Partnership Boosts AI Cloud Backlog
NVIDIA IREN partnership ties NVIDIA to IREN's pipeline and underpins a $3.4 billion AI Cloud contract that boosts contracted backlog and may reprice stock.
KEY TAKEAWAYS
- IREN signed a five-year $3.4 billion AI Cloud contract with NVIDIA, anchoring early Childress and Sweetwater deployments.
- NVIDIA gained a five-year option that could invest up to $2.1 billion in IREN, aligning capital incentives.
- Deal backs IREN's contracted ARR and supports a 1,210 MW build target in 2027.
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The NVIDIA IREN partnership announced on May 7, 2026, commits to deploying up to 5 GW of NVIDIA DSX-aligned AI infrastructure across IREN’s global pipeline and grants NVIDIA a five-year right to purchase up to 30 million IREN ordinary shares, tightening operational and capital ties.
Deal Terms and AI Cloud Contract
NVIDIA and IREN announced a strategic partnership to deploy up to 5 GW of NVIDIA DSX-aligned AI infrastructure across IREN’s global data-center pipeline, designating the 2 GW Sweetwater campus in Texas as a flagship site. The agreement includes a five-year option for NVIDIA to buy up to 30 million ordinary IREN shares at $70 per share, potentially investing up to $2.1 billion, subject to regulatory approval and other conditions [source:GlobeNewswire, “NVIDIA and IREN Announce Strategic Partnership...” (2026-05-07 16:34 ET)].
IREN signed a five-year AI Cloud contract with NVIDIA valued at $3.4 billion to supply air-cooled Blackwell GPUs. Deployment will begin within 60 MW at IREN’s Childress data centers, targeting a ramp from early 2027. The contract serves as the commercial anchor of the partnership, underwriting early capacity commercialization tied to NVIDIA systems [source:GlobeNewswire, “IREN Secures $3.4bn AI Cloud Contract...” (2026-05-07 18:35 ET)].
Capacity Expansion and Financial Outlook
In its business update and Q3 FY26 results, IREN reported revenue of $144.8 million for the quarter ended March 31, 2026, and a cash balance of $2.6 billion as of April 30, 2026. The company said its 2026 expansion is on track to reach 480 MW by year-end, with Horizons 1–4 deliveries. For 2027, it plans roughly 1,210 MW in build, including Childress Horizons 5–6 and the initial Sweetwater phase, with ramp starting early that year. Operational capacity is fully contracted at $3.1 billion in annual recurring revenue (ARR), targeting $3.7 billion ARR by the end of 2026 [source:GlobeNewswire, “IREN Business Update and Q3 FY26 Results” (2026-05-07 17:17 ET)].
IREN said it expects to fund near-term capital spending with its cash balance, operating cash flows, and GPU financing. The company noted execution risks related to data-center development and growth strategy in its 2025 Form 10-K.
The acquisition of the Nostrum Group adds about 490 MW of grid-connected power in Spain and expands IREN’s development pipeline, broadening its secured-power footprint to support global AI deployments. This deal aligns generation and grid-connected power with the data-center pipeline that NVIDIA systems will populate [source:GlobeNewswire, “IREN Expands AI Cloud Platform... Nostrum Group” (2026-05-07)].
IREN is also pursuing an all-stock acquisition of Mirantis, valued at about $625 million in secondary reporting. Mirantis will operate as a standalone subsidiary to strengthen IREN’s AI Cloud software and orchestration capabilities.
Quote
“AI factories are becoming foundational infrastructure for the global economy,” said Jensen Huang, NVIDIA founder and CEO [source:GlobeNewswire, “NVIDIA and IREN Announce Strategic Partnership...” (2026-05-07 16:34 ET)].
