IREN Limited Secures 2.8 GW Capacity, Targets $3.4 B Revenue with $1.9 B Microsoft Deal
IREN Limited has secured 2.8 GW of grid-connected capacity and West Texas land, underpinning a planned 3 GW AI data center buildout by 2029 with projected net income of $2.3 billion. Management targets $3.4 billion in annualized revenue by FY26, driven by a $1.9 billion ARR Microsoft agreement.
1. Unique Secured Power Assets Drive Growth
IREN has pre-secured 2.8 GW of grid interconnection capacity and land in West Texas, a region with some of the tightest power constraints in the U.S. These scarce, pre-approved sites enable the company to fast-track gigawatt-scale AI clusters without the typical 24-month interconnection delays. IREN’s portfolio now spans five grid-connected campuses totaling over 15,000 acres, positioning it to deploy capacity at an industry-leading pace and defend against new entrants seeking similar scale.
2. Massive AI Data Center Pipeline
The company’s development pipeline includes over 3 GW of planned AI data centers scheduled to be operational by 2029. Current construction activity encompasses 1.2 GW of capacity already under heavy engineering, procurement and construction (EPC) contracts. IREN projects that these assets will host some of the largest hyperscale AI clusters in North America, with guaranteed minimum offtake agreements representing more than $1.9 billion in annual recurring revenue under a marquee hyperscaler deal announced last quarter.
3. Robust Financial Projections and Upside
By 2029, IREN forecasts generating approximately $2.3 billion in net income and more than $5 billion in EBITDA, driven by high-utilization AI workloads and contributions from its legacy crypto-mining operations. Management’s targets include reaching a $3.4 billion annualized revenue run rate by fiscal 2026, with project-level EBITDA margins of roughly 85%. Sensitivity analysis suggests that each additional 0.5 GW of secured power capacity could boost annual EBITDA by $150 million.
4. Strategic Partnerships and Market Position
In late 2025, IREN closed a $9.7 billion, 15-year power supply agreement with a global cloud provider for 200 MW of capacity, underpinning its reputation as a preferred AI compute partner for hyperscalers. The company’s vertically integrated model—from land acquisition through substation construction and site operations—gives it a competitive edge over traditional data center REITs and equipment vendors. With a market capitalization near $16 billion, IREN trades at a significant discount to larger peers while offering a clearer path to rapid scale-up in the AI infrastructure market.