IREN (NASDAQ: IREN) said Monday that it has closed a $3.65 billion investment-grade GPU financing facility to support delivery of its AI cloud contract with Microsoft. The company said the deal is the highest publicly rated investment-grade GPU financing and the first in the U.S. private placement market.
“The financing comprises a $2.10bn U.S. private placement at a fixed rate equivalent to SOFR plus 2.13% and a $1.55bn delayed draw term loan at a floating rate of SOFR plus 2.25%, for which IREN has entered into interest rate hedges,” the press release states. “IREN achieved a blended cost of debt of 6.00% notwithstanding higher base rates since the initial DDTL underwriting commitment”
Dan Roberts, co-founder and co-CEO of IREN, said the financing terms reflect the strength of the company’s customer contracts and its ownership of the data center infrastructure where the GPUs operate.
“Securing investment-grade financing on these terms reflects both the quality of our customer contracts and the fact that we own the data center infrastructure these GPUs run in,” Roberts said in a post on X. “That combination broadens our access to institutional capital and lowers our cost of capital as we scale.”
What the financing funds
The $3.65 billion facility backs IREN’s previously announced $9.7 billion managed services AI cloud contract, under which IREN provides Microsoft access to NVIDIA GPUs over a five-year term across four data centers in Childress, Texas.
Dell said in November 2025 it would supply racks of NVIDIA GB300 GPUs and other data center equipment to support the collaboration between IREN and Microsoft.
Infrastructure as collateral
The financing’s significance lies in how it was structured. IREN is presenting contracted GPU capacity, backed by owned data center sites and a creditworthy counterparty in Microsoft, as collateral strong enough to attract investment-grade terms in the private placement market.
The structure matters for compute infrastructure operators trying to finance large-scale GPU deployments. Upfront hardware costs run into the billions, and access to cheaper institutional capital, rather than equity dilution or higher-cost debt, is a competitive advantage.
IREN has been scaling its AI infrastructure ambitions alongside its partnership with NVIDIA on up to 5 GW of AI infrastructure buildout. The Childress, Texas campus provides 200 megawatts within a 750-megawatt site, per company materials.
Update (June 1, 2026 9:16 am EST): Removed information regarding separate IREN deal with NVIDIA, which was incorrectly included as party to the new funding announcement listed today. Added quote from press release with interest rate information.
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