IREN Secures $225M in AI Cloud Contracts, Eyes Over $500M Annualized Revenue as GPU Expansion Accelerates
Secured AI Contracts Now Cover 48% of Total GPUs On Order
IREN Limited (NASDAQ: IREN) announced a substantial leap forward in its AI cloud business, securing multi-year contracts for 11,000 out of its 23,000 NVIDIA GPUs, totaling approximately $225 million in annualized run-rate revenue (ARR) expected by the end of 2025. This covers 48% of the GPUs that IREN currently has operating or on order, a figure that signals strong market confidence from leading AI companies even before full hardware deployment.
On Track for $500M+ ARR as Blackwell GPU Demand Stays Strong
IREN projects it will achieve more than $500 million in ARR from the 23,000 GPUs deployed by the end of Q1 2026. Each contracted deployment runs for an average of two years, with terms that support an approximate two-year revenue payback period—a metric highlighting the rapid capital recovery that IREN's customers expect. New NVIDIA Blackwell GPU deals are being signed ahead of actual delivery, suggesting continued robust demand from AI sector leaders.
Expansion Capacity: 100,000+ GPUs and Nearly 3GW of Secured Power
Beyond its initial GPU tranche, IREN is setting the stage for exponential growth. The company's British Columbia campuses, combined with two large data centers (Horizon 1 & 2) under construction in Childress, will provide the infrastructure for over 100,000 GPUs. This is underpinned by a power and land portfolio comprising 2,910 megawatts of grid-connected capacity across more than 2,000 acres in North America, giving IREN the firepower to attract more high-value AI and cloud contracts as demand continues to rise.
| Key Metric | Figure | Details / Timeline |
|---|---|---|
| GPUs with Signed AI Cloud Contracts | 11,000 | Expected online by end of 2025 |
| Total GPUs Operating or on Order | 23,000 | By end of Q1 2026 |
| AI Cloud ARR (Secured Contracts) | $225M | Annually by end of 2025 |
| Total Target AI Cloud ARR | >$500M | Annualized, end of Q1 2026 |
| Potential GPU Capacity (Planned) | 100,000+ | Future expansion |
| Secured Power Portfolio | 2,910 MW | US & Canada |
Rapid Pivot to AI Compute Strengthens Competitive Position
IREN's ability to pivot its British Columbia campuses from ASICs to GPUs has enabled it to meet fast-rising demand for AI compute infrastructure. According to IREN’s leadership, their strategic move—bolstered by almost 3GW of renewable grid-connected power and large-scale, purpose-built facilities—gives them an edge in supporting the evolving AI sector.
Industry-Aligned Reporting Signals Growing Maturity
Reflecting its evolution from a pure-play Bitcoin miner to a diversified cloud services and AI infrastructure company, IREN will now shift to industry-standard reporting and discontinue monthly operating updates. This change could indicate confidence in operational consistency as the business scales and attracts a broader range of customers.
Takeaway: IREN Poised for Scalable AI Cloud Growth
With substantial contracts locked in and the groundwork for rapid expansion laid out, IREN appears positioned as a go-to platform for next-generation AI workloads. Investors and AI customers alike may want to monitor IREN’s ability to fill its pipeline, bring its 23,000 GPUs online, and eventually leverage its infrastructure for more than 100,000 GPUs—a scale few competitors can match. As always, actual outcomes will depend on execution, customer uptake, and evolving trends in AI infrastructure demand.
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