IREN Leverages GPU Infrastructure to Capture $500M AI Cloud Market

IREN Limited (NASDAQ: IREN) has secured multi-year cloud services contracts for the deployment of NVIDIA Blackwell GPUs, signaling a strategic expansion in its AI Cloud business. The company anticipates achieving over $500 million in annualized run-rate revenue (ARR) by Q1 2026, driven by the 23,000 GPUs currently in operation or on order. This target, based on internal assumptions about utilization and pricing, reflects IREN's capacity to meet surging demand for AI compute resources [1].

To date, 11,000 of the 23,000 GPUs have been contracted, generating $225 million in AI Cloud ARR expected to materialize by the end of 2025. Contracts for the Blackwell GPUs are typically structured over two-year terms, with pricing designed to yield a revenue payback within approximately two years. This model underscores the company's ability to secure long-term commitments from AI clients amid the current market dynamics [1].

IREN's expansion is supported by its infrastructure, including the Horizon 1 & 2 data centers under construction in Childress, Texas, which can accommodate over 100,000 GPUs. The company's 2,910 MW of secured power and land portfolio across North America further positions it to scale operations. These assets are central to ongoing customer discussions, as IREN emphasizes its capacity to transition from ASICs to GPUs and accelerate data center construction [1].

Daniel Roberts, Co-Founder and Co-CEO of IREN, highlighted the company's unique positioning to address AI compute needs. "Our ability to rapidly transition from ASICs to GPUs across our British Columbia campuses, combined with the speed of Horizon 1 & 2, demonstrates how IREN is uniquely positioned to meet accelerating demand," he stated. The company also emphasized its 3,000 MW of grid-connected power and the reputation of its cloud services business as key differentiators in a competitive market [1].

IREN will shift to a standardized reporting framework aligned with industry peers, discontinuing monthly operating updates. This transition aims to streamline communication while maintaining transparency. The company's broader strategy includes leveraging its renewable energy infrastructure and next-generation data centers to support Bitcoin mining, AI cloud services, and AI data center projects [1].

Source: [1] IREN Secures New Multi-Year AI Cloud Contracts (https://www.globenewswire.com/news-release/2025/10/07/3162322/0/en/IREN-Secures-New-Multi-Year-AI-Cloud-Contracts.html)