IREN Limited IREN is expanding its global AI data center infrastructure to capitalize on rising demand for artificial intelligence computing. The company has announced a development pipeline exceeding 5 gigawatts (GW) across North America, Europe and Australia. It targets approximately 300 megawatts (MW) of commissioned IT capacity by year-end 2026 and 800 MW by year-end 2027, creating opportunities to scale its AI Cloud Services business.
In the United States, IREN is advancing projects in Texas and Oklahoma. At Childress, TX, it delivered Horizon 1, the first of four planned 50-MW liquid-cooled IT deployments for Microsoft. The remaining three deployments are targeted for delivery in the fourth quarter of 2026. Meanwhile, Sweetwater in Texas and Kiowa in Oklahoma represent significant longer-term expansion opportunities.
IREN is also broadening its international footprint. Its 800-MW Bundey project in South Australia is progressing through permitting and procurement, while the 300-MW Badajoz development provides a foothold in Europe. The acquisition of Nostrum Group strengthens its European development capabilities, while Mirantis adds software and cloud orchestration capabilities that could support broader enterprise offerings.
IREN reported $4 billion in contracted annualized run-rate revenues (ARR) associated with its 2026 capacity, of which $1 billion was operational as of Aug. 26, 2026.
IREN expects fiscal 2027 capital expenditures of $25 billion to $30 billion, requiring substantial funding. IREN’s global expansion offers considerable growth potential, but disciplined capital allocation and successful capacity delivery will determine whether it translates into sustainable financial growth.
How Are IREN’s Competitors Expanding?
CoreWeave CRWV is expanding its AI cloud infrastructure across multiple U.S. regions to meet growing demand from hyperscalers and AI developers. In the second quarter of 2026, active power capacity rose nearly 500 MW to 1.5 GW, while contracted power reached 3.7 GW. The company is expanding its powered-land footprint and developing additional facilities to strengthen its geographic reach and computing capacity.
Applied Digital APLD is expanding geographically across North Dakota, Louisiana and Alabama, with approximately 1.41 GW of leased IT capacity across five campuses. It has also entered Finland, securing an agreement for up to 1 GW of potential power capacity, marking its first international expansion.
IREN’s Price Performance, Valuation and Estimates
Shares of IREN have declined 9.8% over the past three months, underperforming the broader industry and the S&P 500 composite.
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In terms of forward 12-month Price/Sales (P/S), IREN is currently trading at 3.19X, which is at a premium to the industry average of 2.68X.
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Estimates for IREN’s fiscal 2027 earnings have been revised downward in the past month.
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Currently, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).