IREN Limited IREN 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. Its announced pipeline exceeds 5 GW, led by 750 MW at Childress, 1.4 GW at Sweetwater 1, 600 MW at Sweetwater 2 and 1.6 GW at Kiowa.
The near-term ramp-up is substantial. IREN targets 0.5 GW of gross capacity and 0.3 GW of IT capacity in 2026, increasing to 1.2 GW gross and 0.8 GW IT capacity in 2027. The company has already delivered Horizon 1, its first 50 MW IT deployment for Microsoft at Childress, with Horizon 2-4 targeted for fourth-quarter 2026 delivery.
Demand is supporting the expansion. IREN said that its 2026 capacity was largely sold out and was in late-stage discussions for a significant portion of 2027 capacity. Contracted ARR tied to 2026 capacity stood at approximately $4 billion, while recent three-year contracts exceeded $20 million of revenue per IT MW.
Financing is also 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 capex with customer prepayments. Another $2.8 billion of GPU financing was announced, including $2.4 billion linked to Mackenzie.
Still, execution remains crucial. Fiscal 2026 revenues were $707 million, including $128.8 million from AI Cloud Services, while AI Cloud revenues grew roughly 8X year over year. Converting the large power pipeline and contracted ARR into commissioned capacity and recurring revenues will be the key test ahead.
IREN’s Peers Accelerate AI Shift as Mining Revenues Fade
Core Scientific CORZ is converting its data center portfolio toward AI/HPC colocation, with about 590 MW contracted to CoreWeave and more than $10 billion of projected revenues over the 12-year agreement.
Applied Digital APLD is also prioritizing AI infrastructure while retaining its crypto-hosting business. As of May 31, 2026, APLD had 1,410 MW of contracted critical IT load across five AI campuses, representing about $36 billion of contracted revenues over initial 15-year lease terms. Meanwhile, its two crypto-hosting facilities continue operating at 286 MW combined capacity.
IREN’s Price Performance, Valuation and Estimates
Shares of IREN have risen 10.7% in the past six months, underperforming the S&P 500 composite but better than the broader industry.
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In terms of forward 12-month Price/Sales (P/S), IREN is currently trading at 4.26X, which is at a premium to the industry average of 2.59X.
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Estimates for IREN’s fiscal 2027 and 2028 earnings have been revised downward in the past week.
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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).