IREN says Microsoft-requested networking changes delayed its $9.7 billion Texas AI project

IREN, an Nvidia-backed cloud provider, said Microsoft-requested networking changes delayed its $9.7 billion AI data center project in Texas, pushing back a key revenue target to early 2026. The company now expects to reach $4 billion in operating annual recurring revenue by January or February, instead of year-end. IREN co-CEO Daniel Roberts said Microsoft requested inexpensive equipment changes after the first building was delivered in August to support latest AI models. The delay follows Microsoft reporting $5 billion less in AI infrastructure spending due to third-party delays, with satellite images pointing to IREN. IREN is also slowing expansion due to tougher financing conditions, though it reported $228 million in quarterly revenue and a $263 million net loss.