Nvidia to Invest Up to $2.1 Billion in IREN in Major AI Data Center Expansion Deal
May 8, 2026
Nvidia to Invest Up to $2.1 Billion in IREN in Major AI Data Center Expansion Deal
Nvidia has announced plans to invest up to $2.1 billion in data center operator IREN, as part of a broader partnership aimed at deploying up to 5 gigawatts of AI infrastructure. The deal, unveiled on Thursday, highlights the relentless demand for computing power as frontier model developers and Big Tech companies pour billions into securing capacity for artificial intelligence workloads.
Under the terms of the agreement, IREN has granted Nvidia a five-year right to purchase up to 30 million shares at an exercise price of $70 per share. The news sent IREN shares up approximately 9% in extended trading, following a close of $56.85 during regular hours. The partnership is designed to accelerate the deployment of large-scale AI factories by combining Nvidia’s factory architecture with IREN’s infrastructure operations, the companies said in a joint statement.
The investment underscores the broader industry trend of surging capital expenditure on AI. All four major U.S. tech giants reported earnings last week, signaling that AI spending would not slow down, with combined outlays expected to surpass $700 billion this year. Future deployments under the Nvidia-IREN deal are expected to focus on IREN’s 2-gigawatt Sweetwater campus in Texas, a site that is central to the company’s growth strategy.
IREN, classified as a “neocloud” provider, sells cloud computing services built on Nvidia’s processors, allowing Big Tech firms to access high-performance computing power without building their own data centers. The company already has a significant foothold in the market, having signed a $9.7 billion cloud deal with Microsoft last year. This latest agreement with Nvidia further cements IREN’s position as a key player in the rapidly expanding AI infrastructure ecosystem.
The deal reflects a broader shift in the industry, where chipmakers and data center operators are forming deeper financial and operational ties to meet the exponential growth in AI demand. By securing long-term capacity and equity stakes, Nvidia is not only ensuring access to critical infrastructure but also signaling its commitment to shaping the future of AI computing.
Source: channelnewsasia
