IREN Ltd. (NASDAQ: IREN) told investors that its 2026 data center capacity is largely sold out, shifting focus to late-stage discussions for 2027 and 2028 buildouts.

Co-CEO Daniel Roberts stated that the company has reached $4 billion in contracted annual recurring revenue (ARR) for 2026, with $1 billion already operational. The firm is now prioritizing strategic merit and long-term economics over speed for future contracts.

Microsoft delivery and Nvidia validation

The company’s vertical integration strategy remains anchored by key partnerships. IREN delivered Horizon 1, the first of four planned 50-megawatt AI cloud deployments under its Microsoft contract, during the quarter. Microsoft is now running AI workloads on this infrastructure.

Additionally, Nvidia extended its validation to the software layer through Mirantis, which IREN recently acquired. Mirantis was named an inaugural Nvidia Certified Hypervisor, enabling IREN to offer managed AI cloud services alongside bare-metal GPU infrastructure.

Contract playbook and pricing

Roberts described a deliberate framework for weighing new contracts based on counterparty strategic merit, economics, and potential for managed services. He noted that signing deals is not the bottleneck; bringing GPUs online is.

COO Kent Draper cited live conversations showing contracts above $20 million per megawatt of IT load. Roberts added that these are 3- to 5-year deals rather than spot capacity. Discussions with prospective customers have advanced well past early stages for a significant portion of 2027 capacity.

Financing and global demand

IREN raised $6.5 billion in GPU financing over the last three months, covering both ends of the credit spectrum. Prepayments from newer contracts are helping finance the build-out. Draper noted that pricing in Spain and Australia has tracked with North America, reflecting a largely global market for compute.

What the Numbers Show

The gap between contracted ARR ($4 billion) and operational revenue ($1 billion) highlights a deployment-heavy phase for IREN. With 2026 capacity sold out, the immediate growth driver shifts to execution of these contracts and conversion of 2027-2028 discussions into signed deals. The high pricing floor (> $20 million/MW) suggests strong demand persistence despite the supply constraints management cited.

HC Wainwright & Co. has reiterated its Buy recommendation on IREN (NASDAQ: IREN), maintaining a price target of $90. Analyst Mike Colonnese issued the note, signaling continued confidence in the company's valuation.

Analyst Action

The firm did not disclose any changes to its financial estimates or key metrics in this update. The maintenance of the current price target suggests that HC Wainwright views the stock’s current trajectory as aligned with its previous valuation model.

What the Numbers Show

With no new financial data disclosed in this specific action, the primary signal is stability in the analyst’s outlook. The unchanged target implies that recent market movements or operational updates have not materially altered the firm’s long-term revenue or margin assumptions for IREN.