Iren, an Australia-based AI data center operator, said on November 5 that network design changes requested by Microsoft had delayed some infrastructure deliveries. The company still plans about US$15 billion in capital spending for the rest of its fiscal year.

Iren said the delay would not trigger financial penalties. It pushed the timeline for its more than US$4 billion annualized run-rate revenue target from year-end to January. The timeline could  extend to the end of February, citing customer-requested changes and supplier timing.

Quarterly AI cloud revenue rose to US$200 million from US$71 million in the previous quarter. Total revenue reached US$228 million, above analysts’ estimates.

The Microsoft project is at Iren’s Childress, Texas, campus, described as a 750 MW facility, under a US$9.7 billion AI infrastructure agreement.

Management said debt and customer prepayments could fund most of its fiscal 2027 capital expenditure plan. An industry analysis said AI deployments are reshaping data center networking and increasing design complexity.

🔗 Source: Reuters