IREN borrows $3.6B to buy Nvidia chips for Microsoft

IREN Borrows $3.6 Billion for Nvidia Chips to Power Microsoft Data Center

IREN Ltd., the Australian data center operator that has rapidly pivoted from Bitcoin mining to artificial intelligence infrastructure, has borrowed approximately $3.6 billion to purchase Nvidia GPUs that will provide computing capacity for Microsoft, according to Bloomberg.bloomberg

The financing package includes about $2.1 billion in bonds sold via private placement and $1.5 billion in project finance loans, with the chips set to be deployed at a Microsoft AI data center in Texas.facebook

A Surge of Capital for AI Infrastructure

The borrowing is part of a broader capital-raising spree by IREN, which has secured more than $9.3 billion in funding over the past eight months across customer prepayments, convertible notes, GPU leasing, and GPU financing. Earlier this month, IREN closed a $3.0 billion convertible senior notes offering — initially sized at $2 billion, then upsized to $2.6 billion, before the initial purchasers exercised a $400 million greenshoe option in full. Those notes carry a 1.00% coupon and mature in December 2033.sec

The GPU purchases underpin a $9.7 billion multi-year agreement IREN signed with Microsoft to deliver cloud infrastructure powered by Nvidia’s GB300 processors. Under that deal, IREN supplies the facilities and energy while deploying the chips in phases at its Texas campus.yahoo

Nvidia’s Role as Both Supplier and Investor

Nvidia is not merely selling hardware to IREN. In May, the chipmaker committed up to $2.1 billion in investment in IREN, tied to deploying up to 600,000 GPUs across IREN’s planned 5-gigawatt global platform. The arrangement also includes a five-year, $3.4 billion AI Cloud contract between the two companies.reuters

Co-CEO Daniel Roberts has said IREN is on track to deliver 140,000 GPUs by the end of 2026, targeting $3.4 billion in annualized recurring revenue.yahoo

The Broader AI Financing Race

IREN’s borrowing reflects a wider trend of data center operators taking on large debt loads to meet surging demand for AI computing. In the same week, Alphabet sold ¥576.5 billion (approximately $3.6 billion) in yen-denominated bonds — the largest such offering by a non-Japanese company — to fund its own data center buildout.yahoo

For IREN, which held $2.6 billion in cash as of April 30, 2026, the bet is that the Microsoft contract and Nvidia partnership will transform it from a mid-cap mining firm into a major hyperscale infrastructure provider — assuming it can build and energize the campuses fast enough to meet its commitments.stocktitan