Dell raises AI server guidance to $60 billion as crypto miners pivot
In brief
- Dell booked $24.4 billion in new AI orders in Q1 FY2027 and shipped $16.1 billion in AI servers
- Full-year AI server revenue guidance raised to $60 billion from $50 billion; overall revenue projection bumped to $167 billion
- IREN signed $1.6 billion deal with Dell for Nvidia Blackwell systems to expand AI cloud business
- Crypto miners transitioning into AI compute providers using existing power and cooling infrastructure
- Goldman Sachs projects AI server spending could reach $1.24 trillion by 2030
AI Server Momentum Accelerates
Dell shipped $16.1 billion worth of AI servers during the quarter, building up a record AI backlog of $51.3 billion. The backlog underscores sustained demand from hyperscalers and enterprises racing to deploy generative AI infrastructure.
That momentum extends beyond traditional data center operators. On May 27, 2026, Bitcoin mining company IREN signed a $1.6 billion deal with Dell to acquire air-cooled Nvidia Blackwell systems for expanding its AI cloud business. The move signals a broader structural shift: crypto miners are transitioning into AI compute providers, with this trend accelerating for over a year.
Why Miners Are Pivoting to AI
The pivot makes economic sense. Crypto mining operations and AI data centers share similar infrastructure requirements: cheap electricity, robust cooling, high-density rack configurations, and proximity to power substations. Miners already own massive power infrastructure and cooling systems designed for compute-intensive workloads.
Hive Digital Technologies has similarly been building out AI operations. The pattern reflects a reallocation of capital from single-purpose mining rigs to multi-use compute platforms where margins may prove more durable.
Market Tailwinds
Tech giants in the US are expected to commit over $700 billion to AI infrastructure spending in 2026 alone. Goldman Sachs has projected that AI server spending could reach around $1.24 trillion by 2030.
Dell isn't alone in capturing this wave. Super Micro Computer, HPE, and Lenovo are competing for the same hyperscaler and enterprise contracts. But Dell's record backlog and revised guidance suggest it's winning a disproportionate share of near-term orders.
"Dell Technologies just posted the kind of quarter that makes Wall Street forget every boring earnings call that came before it." — Crypto Briefing
