NVIDIA Invests $1.44B in Bitcoin Miner-Turned-AI Firm IREN, Partners on 2GW Texas Data Center
NVIDIA is investing up to $2.1B in IREN and co-developing a 2GW AI data center in Texas. IREN targets $3.7B in annual AI cloud revenue, backed by a $9.7B Microsoft contract and a 150,000-GPU buildout.
- NVIDIA is investing up to $2.1B in IREN via warrants, co-building a 2GW AI data center in Texas
- IREN surged 21% after-hours, backed by a $9.7B Microsoft deal and 150,000-GPU target
Warrant strike price $70 · after-hours +21% · Microsoft $9.7B contract · 150,000 GPU target.
On May 7, NVIDIA announced an investment of up to $2.1B in AI data center company IREN. Following the announcement, IREN shares surged 21% in after-hours trading to $69.29.
This is not a straightforward equity investment. The structure involves IREN issuing five-year warrants to NVIDIA, giving NVIDIA the right to purchase up to 30 million IREN shares at $70 per share — a clear bet on IREN's long-term growth.
From Bitcoin Miner to NVIDIA Partner
IREN was formerly known as Iris Energy — a Bitcoin mining company headquartered in Sydney, Australia, and listed on Nasdaq.
The pivot from Bitcoin mining to AI data centers was a natural evolution. Both operations demand large-scale power capacity and cooling infrastructure. As mining profitability declined, AI demand exploded — and IREN was among the fastest to execute the transition.
The scale of the transformation is striking.
- Additional purchase of 50,000 NVIDIA B300 GPUs (announced in March) — targeting a total fleet of 150,000 GPUs
- Five-year, $9.7B contract with Microsoft
- Annual AI cloud revenue target of over $3.7B
2GW in Texas — What That Number Means
The jointly developed data center will be located in Sweetwater, Texas, at a capacity of 2 gigawatts — enough to power approximately 1.5 million homes. This is hyperscale AI infrastructure on a massive scale.
The division of labor is clear: NVIDIA supplies the semiconductors and GPUs, while IREN secures the land and power infrastructure. This mirrors broader trends seen in behind-the-meter generation for AI data centers and offshore data center investments driven by AI power bottlenecks. The AI power crunch is creating entirely new infrastructure partnership models.
The GPUs will be deployed in phases during the second half of 2026 across IREN's data centers in Mackenzie, British Columbia, and Childress, Texas.
This is a defining example of Bitcoin mining infrastructure being repurposed for AI data centers — with power and cooling assets carried over wholesale.
Today's Earnings Report Is the Key Checkpoint
May 8 is IREN's FY26 Q3 earnings date. The market is focused on two things:
- GPU deployment progress — how close IREN is to its 150,000-unit target
- Microsoft contract revenue recognition — the pace toward the $3.7B annual run rate
These two metrics will determine the direction of the stock.
Frequently Asked Questions
How does a warrant-based investment differ from a standard equity investment?
A warrant gives NVIDIA the right — but not the obligation — to purchase IREN shares at a set strike price of $70. Rather than paying $2.1B upfront, NVIDIA can exercise that right within five years if IREN's stock price rises above $70. For IREN, the strategic partnership with NVIDIA matters more than any immediate cash infusion.
Why are Bitcoin miners converting to AI data centers?
Bitcoin mining and AI data centers share the same core infrastructure requirements: large-scale power capacity and cooling systems. As post-halving mining profitability declines and demand for AI GPUs surges, repurposing existing infrastructure is the most capital-efficient path. Beyond IREN, companies like MARA Holdings and Core Scientific are making the same pivot.
Why is Texas emerging as a hub for AI data centers?
Texas offers relatively low electricity costs, no state corporate income tax, and a flexible regulatory environment. Its well-developed natural gas power infrastructure supports the 24/7 reliable power supply that AI data centers require. Sweetwater in particular also benefits from abundant wind energy resources.
What should investors watch in IREN's May 8 earnings report?
The two key metrics are GPU deployment progress — specifically how far along IREN is toward its 150,000-unit target — and the pace at which the $9.7B Microsoft contract is translating into recognized revenue. Together, these indicators determine whether IREN's $3.7B annual AI cloud revenue target is achievable on schedule.
How large is a 2GW data center?
2 gigawatts is enough electricity to power approximately 1.5 million homes. That represents roughly five to ten times the capacity of a typical hyperscale data center, which usually operates in the hundreds of megawatts range. This puts it firmly in the category of ultra-large-scale AI training infrastructure.
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