IREN (NASDAQ: IREN) announced Monday that it has secured $2.8 billion in new multi-year AI cloud services contracts with leading AI developers. Following the massive influx of business, the data center and bitcoin mining operator lifted its year-end 2026 AI cloud annualized run-rate (ARR) revenue target from $3.7 billion to more than $4 billion.
According to IREN, the new agreements bring its contracted ARR to approximately 85% of this newly revised target. Following the announcement, IREN shares jumped 15%, according to DI Metrics. The company’s liquidity remains robust, holding roughly $7.6 billion in cash and cash equivalents as of June 30—a figure that excludes prepayments from recent graphics processing unit (GPU) deployments.
De-Risking the Capital Buildout
The newly signed customer contracts carry a weighted average term of about four years. Crucially for IREN’s capital structure, the agreements include upfront customer prepayments covering approximately 45% of related GPU capital expenditures. This upfront cash highly reduces IREN’s external funding requirements for its aggressive hardware deployments.
Daniel Roberts, IREN co-founder and co-CEO, highlighted the company’s exponential infrastructure growth over the past year:
“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.”
From Bitcoin to Big Tech
IREN’s infrastructure is currently powering diverse, high-performance workloads across physical AI and robotics, generative media, design, AI search, and large-scale model development. The company’s expanding customer ecosystem includes major industry players like Microsoft, NVIDIA, Perplexity, and Figure AI, with services delivered via both bare-metal and managed-cloud arrangements.
This momentum builds directly upon IREN’s massive five-year, $9.7 billion AI cloud agreement with Microsoft signed in November 2025. To support this ongoing growth, IREN has already secured critical hardware, including a recent $1.6 billion order of Dell Blackwell systems destined for its Childress, Texas campus.
The pivot represents a strategic scaling of IREN’s core operating model, transitioning data center capacity away from traditional bitcoin mining toward high-margin AI cloud workloads. As of its February filing, the company reported 810 MW of operating data centers and more than 4.5 GW of secured power capacity to fuel its long-term expansion.
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