IREN subsidiary secures $3.65B financing for AI data centers

A subsidiary of IREN Limited, a Nasdaq-listed technology infrastructure company, has secured a $3.65 billion financing facility to fund the buildout of artificial intelligence data centers for Microsoft. The capital, finalized on May 29 and announced publicly this week, will be used to purchase specialized graphics processing units (GPUs) required under a multi-year cloud computing contract between the two companies.

The financing package is structured as a $2.1 billion private placement and a $1.55 billion delayed-draw term loan, both maturing in 2031. According to company statements, the blended borrowing cost for the total facility is 6%. The debt securities received investment-grade ratings of 'A' from Fitch and 'A low' from DBRS Morningstar. The deal was arranged by Goldman Sachs and J.P. Morgan.

Officials described the financing as being secured directly by the GPU hardware and the future cash flows from the Microsoft contract, a structure that resembles project finance. This approach ties lender repayment to the performance of the specific contract rather than IREN’s broader corporate balance sheet. The parent company has provided limited guarantees related to service...