IREN Signs $2.8B in AI Cloud Contracts, Lifts 2026 Target to $4B

What IREN filed

IREN Limited told the U.S. Securities and Exchange Commission on July 20 that it signed $2.8 billion of new multi-year cloud contracts with leading AI developers. On the strength of those deals, the company lifted its target for year-end annualized run-rate revenue, the amount its AI cloud would bill over a full year at current prices and usage, from $3.7 billion to more than $4 billion. Roughly 85% of that target is now covered by signed contracts.

IREN rents out data-center computing power for training and running AI models. Its customer roster now includes Microsoft, NVIDIA, Perplexity, Figure AI, Together AI and several other AI labs. They take capacity either as bare-metal access, where the customer controls the raw servers, or as managed cloud services that IREN operates on their behalf.

From bitcoin miner to AI landlord

The filing caps a fast pivot. IREN, formerly Iris Energy, built its business mining bitcoin with cheap renewable power, then pointed that land-and-power portfolio at AI computing, where prices per unit of electricity are far higher. The economics are now tilting in its favor. Recent contracts carry customer prepayments equal to about 45% of the chip spending each deployment needs, which lowers the cash IREN has to raise on its own. The contracts run about four years on a weighted-average basis, giving the company a long revenue backbone.

The balance sheet reflects the scale of the plan. IREN held roughly $7.6 billion of cash as of June 30, a figure that includes $1.7 billion set aside for the chip financing tied to its Microsoft contract.

The bet is on delivery

Demand is not the constraint. IREN said orders from hyperscalers, large enterprises and AI developers keep running past the capacity it has available or planned. The harder task is building fast enough. Co-founder and co-chief executive Daniel Roberts said the company has grown “from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027.” The revenue only lands as each data center is commissioned, tested and accepted by customers, so the $4 billion target rests on the build staying on schedule. At roughly $12 billion of market value, IREN shares already carry a lot of that expected growth.

What to watch

1. Whether IREN commissions the 480 megawatts on schedule. The $4 billion target assumes the capacity is live and billing by year-end, and run-rate revenue only converts to reported revenue as sites pass customer acceptance.

2. How much of the remaining 15% of the target gets signed, and at what price. IREN said contracted pricing keeps strengthening, so the next round of deals will test whether that holds as more supply comes online.

3. The funding path for 2027. Reaching 1.2 gigawatts is capital-heavy, and the mix of customer prepayments, the $7.6 billion cash pile and any new financing will decide how much dilution or debt the growth requires.