Nvidia Investing up to $2.1 billion in IREN, Deploying 5 GW of AI Data Centers

Nvidia announced on Thursday that it will invest up to $2.1 billion in data center operator IREN Limited and sign a $3.4 billion AI cloud service contract, with plans to jointly deploy up to 5 gigawatts of AI infrastructure, highlighting the strong global demand for computing power in the tech industry.

Core Terms of Cooperation

According to a joint statement from the two companies, Nvidia has obtained a five-year subscription right to purchase up to 30 million shares of IREN at an exercise price of $70 per share, generating the highest $2.1 billion investment right, which must be exercised subject to several conditions, including regulatory approval.

At the same time, IREN signed a $3.4 billion AI cloud service contract with Nvidia to acquire and deploy Nvidia's Blackwell processors.

The two companies said that the cooperation aims to combine Nvidia's DSX AI factory architecture with IREN's operational expertise in electricity, land, data centers, and GPU deployment to accelerate the construction of large-scale AI factories. Future deployments are expected to focus on IREN's 2-gigawatt flagship Sweetwater campus in Texas.

Nvidia CEO Huang Renxun said in a statement, "AI factories are becoming the core infrastructure of the global economy, and large-scale deployment of these systems requires a full-stack deep integration covering computation, networking, software, power, and operations."

Strategic Significance of the "New Cloud" Model

IREN is a representative of so-called "new cloud" (neocloud) companies - these companies build cloud computing services based on Nvidia processors, allowing large tech companies to access computing power without building new data centers. IREN has previously signed a $9.7 billion AI computing power purchase agreement with Microsoft, securing it as a core anchor customer.

On Thursday, IREN also announced its agreement to acquire Ingenostrum, a Spanish data center developer, to support its global expansion plan.

The market responded positively to the news. IREN's stock rose 6% after hours.

The AI Infrastructure Arms Race Continues to Heat Up

The background of this cooperation is the continuous acceleration of global AI infrastructure investment.

Last week, the four major US tech giants successively released their financial reports, all stating that AI spending would not slow down, and it is expected that this year's total capital expenditure will exceed 700 billion US dollars. Nvidia has also recently signed a up to $3.2 billion fiber optic manufacturing cooperation agreement with Corning, and has cooperated with several energy companies to promote the grid deployment of AI factories, continuously investing strategically in the AI ecosystem.

Founded by Australian brothers Daniel and Will Roberts, IREN initially focused on Bitcoin mining and later transformed into AI computing. The company's stock has surged 765% over the past year, with a cumulative increase of 33% since 2026.