IREN's AI Cloud Expansion Brings Double-Digit Growth, Premium Valuation
IREN Limited has been expanding its AI cloud infrastructure and shifting focus from Bitcoin mining. The company's AI Cloud Services revenues nearly doubled to $33.6 million in third-quarter fiscal 2026, compared to $17.3 million in the prior quarter.
The growth is supported by a five-year contract with Microsoft worth $9.7 billion, as well as additional multi-year cloud services contracts valued at $2.8 billion announced in July.
IREN's contracted demand and AI Cloud expansion support a credible growth case, but the premium sales multiple and capital-heavy buildout leave less room for execution slippage.
The company is targeting 480 MW of AI Cloud capacity and 150,000 GPUs by the end of calendar 2026, with $2.6 billion in cash to support near-term spending.