For security reasons, data URIs are restricted to downloaded resources.
Data URIs cannot be used for navigation, for scripting, or to populate frame or iframe elements.
This goes for all versions of Internet Explorer.
To get it working, you can do:
var html = "<!DOCTYPE html>"+
"<html>"+
"<head>"+
"<style>"+
"/********** CSS stuff here **********/"+
"</style>"+
"</head>"+
"<body>"+
"<!--------- HTML stuff here ---------->"+
"<script src=\"http://ajax.googleapis.com/ajax/libs/jquery/1.10.2/jquery.min.js\"><" + "/script>" +
"<script>"+
"/*********** jQuery stuff here *****/"+
"<" + "/script>"+
"</body>"+
"</html>";
var frame = document.getElementById('iframe_id');
frame.contentWindow.document.write(html);