IREN’s Texas data center for Microsoft falls behind schedule

Network changes requested by Microsoft for newer AI models are slowing IREN's Childress buildout, putting later phases of a $9.7 billion deal under pressure IREN’s flagship Texas data center project is running late. The cause is one of its own customers. Microsoft asked for network changes to support newer AI models. That request has pushed the former Bitcoin miner’s Childress campus behind schedule. The stakes are large. The Childress buildout underpins a five-year cloud services contract with Microsoft valued at approximately $9.7 billion. What’s actually delayed The contract is structured in four phases, which IREN calls Horizons. Each one represents 50 MW of capacity. Together they will house liquid-cooled NVIDIA systems for Microsoft. Horizon 1 is done. Microsoft accepted it in August 2026. The problem is everything after that. Horizons 2 through 4 were originally targeted for phased completion by Q4 2026. Delivery may now slip into Q1 2027, and contractual extensions into Q2 2027 are expected. Microsoft’s network requests are not the only issue. The project has also run into equipment shortages and a generator fire. Satellite imagery has added to the concern. In an analysis d...