IREN NASDAQ:IREN, a data center operator that rents GPU computing capacity to AI developers, rose 9.31% intraday after announcing $2.8 billion in new multi-year cloud services contracts and raising its year-end 2026 AI Cloud annualized run-rate revenue target to more than $4 billion, up from $3.7 billion. About 85% of that revised target is now under contract.
The customer list includes Microsoft NASDAQ:MSFT, Nvidia NASDAQ:NVDA, and Perplexity, among other developers. Contracts carry a weighted average term of about four years. Recent deals include customer prepayments equal to roughly 45% of the GPU capital spending they require, which cuts IREN's own funding need for those deployments.
IREN said interest from hyperscalers, enterprises and frontier labs continues to exceed both available and planned capacity, and that it is in discussions across its entire 2026 and 2027 expansion program. Co-CEO Daniel Roberts said self-built AI Cloud capacity has gone from roughly 3 megawatts to 480 MW being delivered this year, with 1.2 gigawatts targeted for 2027.