Compute-focused cloud provider IREN announces expansion of power pipeline to over 5 GW capacity.

IREN Limited is accelerating its shift from Bitcoin mining to AI infrastructure, with roughly 5 GW of contracted or secured power capacity across the United States, Canada, Spain and Australia as of June 30, 2026. The announced pipeline exceeds 5 GW, led by projects at Childress (750 MW), Sweetwater 1 (1.4 GW), Sweetwater 2 (600 MW) and Kiowa (1.6 GW).

The company targets substantial near-term ramp. IREN aims for 0.5 GW of gross capacity and 0.3 GW of IT capacity in 2026, ramping to 1.2 GW gross and 0.8 GW IT capacity in 2027. It has already delivered Horizon 1, a 50 MW IT deployment for Microsoft at Childress, with Horizon 2-4 targeted for fourth-quarter 2026 delivery.

Demand is underpinning the expansion. IREN said its 2026 capacity was largely sold out and in late-stage discussions for a significant portion of 2027 capacity. Contracted annual recurring revenue tied to 2026 capacity stood at approximately $4 billion, while recent three-year contracts exceeded $20 million of revenue per IT MW.

Financing is being structured around deployments. IREN secured $3.6 billion of GPU financing at 6% for its Microsoft contract, expected to fund about 96% of associated GPU capital expenditure with customer prepayments. Another $2.8 billion of GPU financing was announced, including $2.4 billion linked to Mackenzie.

Execution remains the critical test. Fiscal 2026 revenues were $707 million, including $128.8 million from AI Cloud Services. AI Cloud revenues grew roughly 8x year over year. Converting the large power pipeline and contracted ARR into commissioned capacity and recurring revenues will determine whether ambition translates to results.

IREN operates in a crowded field. Core Scientific is converting its data center portfolio toward AI and HPC colocation, with about 590 MW contracted to CoreWeave and more than $10 billion of projected revenues over a 12-year agreement. Applied Digital had 1,410 MW of contracted critical IT load across five AI campuses as of May 31, 2026, representing about $36 billion of contracted revenues over initial 15-year lease terms, while retaining 286 MW of combined crypto-hosting capacity.

On valuation, IREN trades at 4.26x forward 12-month price-to-sales, a premium to the industry average of 2.59x. Shares have risen 10.7% over the past six months, trailing the S&P 500 but outpacing the broader industry. Earnings estimates for fiscal 2027 and 2028 have been revised downward in the past week.