IREN has signed a five-year, USD $3.4 billion AI cloud contract with NVIDIA.
It has also entered into a 5GW strategic partnership with NVIDIA tied to its global data centre pipeline, as it continues to shift from bitcoin mining to AI infrastructure.
The contract covers air-cooled Blackwell GPUs and will be deployed within 60MW of IREN's existing data centres at Childress, with ramp-up targeted from early 2027. Alongside the commercial agreement, IREN granted NVIDIA a five-year right to buy up to 30 million ordinary shares at USD $70 each, giving it the option to invest up to USD $2.1 billion, subject to conditions including regulatory approval.
The update comes as IREN expands its AI cloud footprint. Its 2026 build-out to 480MW remains on track, with Horizons 1 to 4 expected by year-end. That operational capacity is fully contracted, with USD $3.1 billion in annual recurring revenue already under contract and a target of USD $3.7 billion by the end of calendar 2026.
Beyond that, 1,210MW of 2027 capacity is now under construction, including Childress Horizons 5 and 6, additional air-cooled capacity at Childress, and the initial phase of Sweetwater 1. IREN also outlined expansion beyond 2028, targeting 5 GW of secured power across North America, Europe and Asia-Pacific.
As part of that longer-term push, additional data centre capacity at Sweetwater and Kiowa is expected to begin ramping from 2028. The Nostrum acquisition adds 490MW in Spain and a development pipeline of more than 1GW, while further Australian projects are moving towards connection agreements.
Quarterly results
Latest quarterly figures showed the financial impact of the transition. Total revenue fell to USD $144.8 million from USD $184.7 million in the prior quarter, while adjusted EBITDA declined to USD $59.5 million from USD $75.3 million.
IREN reported a net loss of USD $247.8 million, compared with a loss of USD $155.4 million in the previous quarter. Revenue fell by USD $39.9 million due to a lower average bitcoin price and the decommissioning of mining hardware ahead of GPU installation and billing, partly offset by higher AI cloud revenue.
Cost of revenue fell by USD $25.9 million, mainly due to lower electricity costs as bitcoin mining capacity was reduced. The net loss also included non-cash impairments of USD $140.4 million, primarily related to retired mining hardware, and unrealised losses of USD $23.7 million from capped calls associated with convertible notes.
Near-term capital expenditure is expected to be funded through a combination of existing cash, operating cash flow, GPU financing and other financing initiatives. Cash stood at USD $2.6 billion at the end of April.
Platform expansion
IREN is also strengthening the software and operational side of its AI cloud business through the acquisition of Mirantis. The deal is intended to improve how its compute is deployed, managed and operated for customers, while broadening the range of customer requirements it can serve over time.
The Mirantis deal sits alongside the Nostrum acquisition as part of a broader effort to build not only physical capacity but also operating systems and customer support. That matters as IREN seeks to convert sites previously used for cryptocurrency mining into facilities designed for AI workloads.
Management framed the NVIDIA agreement as validation of that strategy and of IREN's role in data centre development. The group has increasingly focused on securing power, land, and build-outs to support GPU-heavy workloads as demand for AI computing grows.
Daniel Roberts, Co-Founder and Co-CEO of IREN, commented on the latest quarter and the company's expansion plans.
"The world is structurally short compute, and the bottleneck is delivered data centre and GPU capacity," said Roberts. "That plays directly into IREN's core strengths - securing power, developing land, building data centres, and bringing compute online at scale."
"This quarter reflected strong execution against that opportunity. We energised the Sweetwater 1 substation on schedule, advanced the Horizon 1-4 liquid-cooled data centres at Childress in support of our $9.7bn contract with Microsoft, and continued transitioning existing data centres from ASICs to GPUs for higher-value AI Cloud workloads. We also signed a 5-year, $3.4bn AI Cloud contract with NVIDIA and entered into a broader strategic partnership that further validates IREN's key role in the AI infrastructure ecosystem."
"The acquisitions of Nostrum and Mirantis will strengthen our platform, adding European sites and teams, together with software, orchestration and support capabilities that will broaden customer access over time as we scale across our global 5GW secured power portfolio," Roberts added.