IREN attributes data center delays to microsoft-requested networking adjustments

IREN, a cloud provider backed by Nvidia, stated that modifications requested by Microsoft concerning networking hardware caused setbacks for its major data center development in Childress, Texas. IREN's co-CEO, Daniel Roberts, explained during an earnings call that the changes, which were relatively minor, were implemented after the first building was completed in August to support the newest AI models. Consequently, IREN revised its revenue forecast, now anticipating $4 billion in operating annual recurring revenue by January or February, shifting from its prior year-end projection. The company is executing the $9.7 billion contract with Microsoft across four phases, and Roberts noted that the data centers are nearly finished, awaiting final equipment arrival for commissioning. This situation comes as Microsoft reported spending $5 billion less than anticipated on AI infrastructure due to delays from third-party cloud providers, though it did not specify names. Satellite imagery analysis by Aterio pointed toward IREN and Nebius. Furthermore, Roberts mentioned that IREN is tempering its expansion plans due to tighter financing, despite sustained customer demand. The company reported quarterly revenue of $228 million alongside a net loss of $263 million.