IREN Surges 9% After Completing AI Cloud Deployment for Microsoft and Securing Nvidia Designation
IREN Limited's shares surged approximately 9% this week following two significant announcements. The company successfully completed its inaugural AI cloud deployment for Microsoft, marking the first phase of a four-part rollout under their five-year agreement worth $9.7 billion.
The deployment, dubbed Horizon 1, utilizes IREN's facility in Childress, Texas, and is powered by direct-to-chip liquid cooling technology. This achievement comes on the heels of Nvidia awarding IREN its Exemplar Cloud designation for the GB300 NVL72 infrastructure.
IREN's energy portfolio, inherited from its cryptocurrency mining heritage, serves as a key competitive advantage. The company operates 810 MW of grid-connected data center capacity and is actively constructing an additional 2,100 MW. This expertise has enabled IREN to secure agreements with prominent clients, including Perplexity, Figure AI, and Fireworks AI.
Despite a decline in third-quarter fiscal 2026 revenue due to the retirement of Bitcoin mining equipment, cloud services revenue expanded to $33.6 million compared to $17.3 million in the corresponding quarter last year. IREN's annual recurring revenue from cloud operations currently stands at $3.7 billion and is projected by Bernstein to reach $10 billion by 2028.