IREN Limited (NASDAQ: IREN) announced it has entered into a $1.6 billion purchase agreement with Dell for air-cooled Blackwell systems to support a previously announced five-year, $3.4 billion managed services AI cloud contract.

The Blackwell systems will be deployed at IREN's existing data centers in Childress, Texas, with commissioning targeted for early 2027. The purchase price includes GPUs, servers, storage, networking, ancillary equipment, integration services, and warranties, with payment terms structured on a post-shipment basis.

Upon commissioning, IREN expects the AI cloud contract to increase its annualized run-rate revenue from $3.7 billion to $4.4 billion. The company stated it is advancing GPU financing in connection with the agreement, consistent with its approach to prior hardware deployments.

"Securing capacity and accelerating commissioning are our top priorities in a market where time-to-compute is everything," said Daniel Roberts, Co-Founder and Co-CEO of IREN. "Our relationship with Dell ensures access to hardware at the scale and speed the market demands."

The company noted that the $4.4 billion ARR target represents expected revenue from the Microsoft contract, the $3.4 billion AI cloud contract, and estimated revenue from planned GPU deployments at British Columbia and Childress sites. IREN cautioned that the target is not fully contracted and actual revenue may differ materially.

IREN describes itself as a vertically integrated AI cloud provider that delivers large-scale data centers and GPU clusters for AI training and inference, with operations across North America, Europe and Asia-Pacific.