IREN Limited, a company specializing in next-generation data centers, announced it has signed additional multi-year cloud service agreements with leading artificial intelligence firms. These contracts are for the deployment of NVIDIA's new Blackwell GPUs, supporting the company's expansion into AI cloud services.
The company stated it is on track to surpass $500 million in annualized run-rate revenue (ARR) from its AI Cloud division by the first quarter of 2026. This projection is based on its current inventory and orders for 23,000 GPUs.
Key Takeaways
- IREN signed new multi-year cloud contracts with AI companies for NVIDIA Blackwell GPUs.
- The company projects over $500 million in annualized run-rate revenue (ARR) from AI Cloud by Q1 2026.
- Contracts for 11,000 of its 23,000 GPUs are already secured, representing approximately $225 million in ARR.
- IREN is developing infrastructure to support over 100,000 GPUs across its North American data centers.
- The company will discontinue monthly operating updates in favor of a standardized industry reporting process.
Expanding AI Cloud Capacity
IREN has successfully secured customer contracts for 11,000 of its total 23,000 GPUs. This initial batch of agreements represents a significant portion of its revenue goals, amounting to approximately $225 million in AI Cloud ARR. The company expects these GPUs to be fully operational by the end of 2025.
The new contracts for the powerful NVIDIA Blackwell GPUs are being signed before the hardware is even delivered. According to IREN, these agreements have an average term of two years. The pricing structure is designed to achieve a revenue payback period of around two years, indicating strong market demand for high-performance computing resources.
Financial Projections
IREN's projection of over $500 million in ARR is an illustrative target based on the full deployment of 23,000 GPUs. The currently secured $225 million in ARR is based on firm contracts for 11,000 GPUs that are expected to be operational by the close of 2025.
Strategic Infrastructure Growth
To meet the growing demand, IREN is actively expanding its physical infrastructure. The company is engaging with both current and potential clients through site tours and technical discussions for capacity beyond its initial 23,000 GPUs.
IREN's data center campuses in British Columbia, Canada, are being repurposed to accommodate the new hardware. In addition, the company is constructing two new data centers, named Horizon 1 and Horizon 2, in Childress, Texas. Together, these facilities provide the necessary capacity for more than 100,000 GPUs.
Power and Land Portfolio
A critical component of IREN's expansion strategy is its significant power and land assets. The company has secured 2,910 megawatts (MW) of grid-connected power across more than 2,000 acres of land in the United States and Canada. This extensive portfolio offers substantial room for future growth and is a key topic in ongoing discussions with customers seeking large-scale AI compute solutions.
From Bitcoin to AI
IREN's expansion into AI cloud services marks a strategic pivot. The company is leveraging its expertise in building and operating power-dense data centers, originally developed for Bitcoin mining with ASICs, to now support the high-demand GPU clusters required for artificial intelligence workloads.
Executive Outlook on AI Demand
Daniel Roberts, Co-Founder and Co-CEO of IREN, commented on the company's strategic position in the rapidly growing AI market. He highlighted the company's agility and execution capabilities.
“Our ability to rapidly transition from ASICs to GPUs across our British Columbia campuses, and the speed at which we’re building Horizon 1 & 2, demonstrates how IREN is uniquely positioned to meet accelerating demand for AI compute,” said Roberts.
Roberts emphasized the company's strong foundation, which includes a large power portfolio and a growing reputation in the cloud services sector. “With nearly 3GW of grid-connected power across North America and a cloud services business scaling in size and reputation, we believe IREN is well positioned to scale with the rapid growth in AI compute needs,” he added.
IREN's Business Model and Future Reporting
IREN operates as a developer, owner, and operator of next-generation data centers that utilize 100% renewable energy, which includes sourcing through Renewable Energy Certificates (RECs). The company's operations are structured around three main business verticals:
- Bitcoin Mining: Operating as one of the world's largest Bitcoin producers with 50 EH/s of installed self-mining capacity.
- AI Cloud Services: Providing high-performance cloud computing to AI customers using next-generation GPUs from NVIDIA and AMD.
- AI Data Centers: Offering end-to-end design, construction, and operation of data center infrastructure specifically tailored for AI workloads.
In a move to align with industry standards, IREN also announced a change to its communication strategy. The company will transition to a standardized reporting process, similar to its peers, and will discontinue its monthly operating updates. This change reflects the continuing evolution of its business as it scales its AI cloud services division.
