Microsoft concerns hit IREN shares, which plunge 18% on data center delays

IREN Ltd shares plunged 18% on Thursday after a Bloomberg report revealed Microsoft has raised concerns about delays and execution risks involving its neocloud partners, amid a broader selloff in technology stocks. Microsoft has intensified oversight of data center projects involving IREN, Nebius Group, and Nscale, and is reconsidering additional contracts with third-party infrastructure providers. Issues partly stem from IREN's Texas campus, where wiring defects disrupted construction schedules, following a generator fire in April and hardware delivery delays disclosed in August. Microsoft and IREN officials met last week to negotiate revised timelines that could push completion back by weeks or months. Microsoft has also exited multiple Nscale projects, including a $3 billion UK data center delayed by grid power challenges, and is prioritizing its own data center expansion over additional neocloud contracts. Gartner estimates 80% of neocloud providers may consolidate or fail by decade's end.