Core News Facts
Data center operator Iren (NASDAQ: IREN) has secured a five-year, $3.4 billion deal with Nvidia (NASDAQ: NVDA) for 60 megawatts (MW) of computing capacity at its Childress, Texas, facility, which could result in $11.33 million per MW annually. This agreement is part of Iren’s larger strategy, expanding its total infrastructure pipeline to 5.8 gigawatts (GW), which includes a recently announced 800 MW site in Australia and a 1.6 GW site in Oklahoma acquired earlier this year.
By utilizing this capacity, Iren could potentially generate $65.7 billion in annual recurring revenue if the rate holds, significantly boosting its earnings capabilities. The company plans to utilize substantial borrowing to fund the conversion of this power into revenue-generating data centers, evidenced by a $3 billion convertible note offering and $3.65 billion in GPU financing recently secured.
Iren has targeted an annual revenue run rate of $4.4 billion, up from a previous target of $3.7 billion, as CEO Daniel Roberts emphasizes the urgency of securing capacity in a competitive market for AI computing resources.
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