On November 3, IREN signed a $9.7 billion cloud deal with Microsoft; a transaction that marks a pivotal moment in its evolution into a dedicated AI data center developer and operator.
Because this is IREN’s first direct contract with a hyperscaler, its analytical value is particularly high. Even though the agreement covers only ~10% of IREN’s secured power capacity, it finally gives investors a concrete reference point to gauge, and reasonably extrapolate, the economics of the company’s ~3 GW development pipeline.
However, the economics of the deal, particularly the sheer scale of the CAPEX and funding it requires, naturally raise serious questions about the underlying return profile.
In this in-depth analysis, I dissect the agreement from all angles, giving you a complete 360-degree picture of the deal and what it truly means for IREN going forward.