Ammon News - Data center owner and operator IREN said on Monday it has signed a nearly $9.7 billion cloud services contract with Microsoft to provide the tech giant with access to Nvidia's GB300 processors over a five-year period.

The move is the latest attempt by Microsoft to boost AI and data center infrastructure at a time when AI demand is outstripping cloud capacity at Big Tech companies.

Shares of IREN surged about 18% in premarket trading after the announcement, with the company also entering into an agreement with Dell Technologies to purchase the chips and ancillary equipment for about $5.8 billion.

IREN expects the GB300 processors to be deployed in phases through 2026 at its 750-megawatt campus in Childress, Texas and said its contract with Microsoft includes a 20% prepayment.