IREN Limited announced $2.8 billion in new multiyear cloud services contracts with leading artificial intelligence developers and increased its year-end 2026 AI Cloud annualized run-rate revenue target from $3.7 billion to more than $4 billion.
Approximately 85% of the updated ARR target is now under contract. The company’s customer base includes Microsoft, NVIDIA, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI, and another unnamed AI developer across its bare-metal and managed cloud services.
IREN said demand from hyperscalers, enterprises, AI developers, and frontier laboratories continues to exceed its available and planned capacity. The company is engaged with potential customers across its entire 2026 and 2027 expansion program.
The company is selectively allocating capacity before new infrastructure is commissioned, with an emphasis on diversifying its customer base and supporting growth across different layers of its AI Cloud platform.
Pricing under recent contracts has continued to strengthen. Some of the agreements include customer prepayments equal to approximately 45% of the GPU capital expenditures associated with the deployments, reducing the amount IREN must finance directly.
Across its portfolio, IREN’s customer contracts have a weighted average term of approximately four years.
IREN plans to deliver 480 megawatts of AI Cloud capacity during 2026, compared with approximately three megawatts of self-built capacity one year earlier. The company is targeting 1.2 gigawatts of AI Cloud capacity in 2027.
The updated target assumes 480 megawatts of gross AI Cloud capacity will be planned by the end of 2026. The calculation is based on internal assumptions regarding GPU models, contract pricing, utilization, storage, and ancillary services.
Revenue is expected to ramp as data centers are delivered and GPUs complete commissioning, testing, and customer acceptance. ARR is an operating metric based on GPU hourly pricing and does not represent revenue calculated under generally accepted accounting principles.
As of June 30, 2026, IREN held approximately $7.6 billion in preliminary cash and cash equivalents. This amount included $1.7 billion in restricted cash associated with GPU financing for the company’s Microsoft contract at its Horizon 1 through Horizon 4 facilities.
IREN operates a vertically integrated AI Cloud platform that provides large-scale data centers and computing infrastructure for AI training and inference. Its platform is supported by a portfolio of grid-connected land and power assets in renewable energy-rich regions across North America, Europe, and the Asia-Pacific region.
KEY QUOTE:
“Our vertically integrated AI Cloud platform is scaling at pace. In the past 12 months, we have expanded from approximately 3MW of self-built AI Cloud capacity to 480MW being delivered this year, with 1.2GW targeted for 2027, broadening our customer base across hyperscalers, enterprises, and AI developers. We are proud to support leading companies building frontier applications across design, physical AI and robotics, generative media, AI search, and model development.”
Daniel Roberts, Co-Founder And Co-CEO Of IREN
