Goldman Sachs Backs IREN Amid Data Center Milestone and Revenue Growth Targets

The institutional support for IREN is growing, with Goldman Sachs disclosing a 9.4% stake in the company and Bank of America holding around 5.8%. The timing is significant as Microsoft has formally accepted Horizon 1, the first data center with direct liquid cooling at IREN's Texas site, marking the completion of the first milestone under their five-year agreement.

The acceptance of Horizon 1 demonstrates IREN's ability to execute on its promises, a crucial step in the AI infrastructure boom. The company has raised its target for annualized AI cloud revenue to over $4 billion, following new multi-year contracts worth $2.8 billion signed in July. The capacity targets call for 480 megawatts by 2026 and 1.2 gigawatts by 2027.

The operational progress extends beyond data centers as IREN completed its acquisition of Mirantis in early August, bringing software expertise that should broaden the company's cloud capabilities. However, the review of all data center projects in Texas by Governor Greg Abbott may slow approval processes for new facilities.