IREN's AI Cloud Pricing Surges Amid Strong Contract Growth
IREN (NASDAQ: IREN) is experiencing a significant surge in pricing for its AI cloud services. The company now commands $25 million per megawatt of IT load, up from around $9.70 million earlier this year and with three-year contract rates rising by over 125%. This increase reflects strong demand driven by scarce compute capacity and is translating into faster payback periods for GPU investments—around two years—with prepayments covering a large portion of capital expenditures. IREN reported substantial revenue growth in its AI Cloud Services segment, which more than doubled sequentially to $70.5 million in Q4 FY26, with full-year revenues reaching approximately $128.8 million—a roughly 8x increase year-over-year. The company aims for $4 billion of contracted annual recurring revenue (ARR) by the end of December 2026 and currently has around $1 billion in operating ARR as of August 26, 2026. The stock reacted positively to these developments, rising over 26% within a week following its Q4 report. IREN's market cap now stands near $17.6 billion.
Topics: AI cloud contracts contracted ARR growth pricing surge