IREN Limited (NASDAQ: IREN) has signed a purchase agreement with Dell Technologies for air-cooled Blackwell systems to support its five-year, $3.4 billion AI cloud contract with NVIDIA.
The systems are slated for deployment across IREN’s data centers at its Childress, Texas campus, with commissioning expected to begin in early 2027.
IREN now targets $4.4 billion in annualized run-rate revenues, representing a $700 million increase from its prior target of $3.7 billion.
The additional revenue is expected to come from bringing additional GPU capacity online and making it available to customers under existing and planned AI cloud deployments.
The deployment will use existing infrastructure at Childress, which management says should help accelerate the rollout timeline for customers seeking faster GPU access.
Management has highlighted “time-to-compute” as a key factor in the AI infrastructure market, where customers are increasingly seeking faster access to GPU capacity.
The Dell agreement is valued at approximately $1.6 billion and includes GPUs, servers, storage, networking equipment, integration services, and warranties.
IREN is pursuing GPU financing for the deployment, consistent with its approach to previous hardware purchases, and the Zacks Consensus Estimate projects revenue growth of approximately 48.1% and 250.3% for fiscal 2026 and 2027, respectively.
IREN faces competition from Applied Digital (NASDAQ: APLD), which in May 2026 signed a 15-year lease agreement with a U.S.-based investment-grade hyperscale customer for Polaris Forge 3, increasing APLD’s total contracted lease revenues across four AI Factory campuses to approximately $31 billion.
TeraWulf (NASDAQ: WULF) also expanded its footprint in May 2026, acquiring the Muskie Data Campus in Eastern Kentucky, a site expected to support more than 1 GW of data center capacity.
The Muskie Data Campus becomes TeraWulf’s second major digital infrastructure campus in Kentucky, alongside its 480 MW Justified Data campus in Hancock County.
IREN shares have surged 71.8% in the year-to-date period, compared to a decline of 5.9% for the Zacks Financial Miscellaneous Services industry.
Despite strong price performance, IREN shares are considered overvalued, trading at a forward price-to-sales ratio of 9.12X against the industry’s 2.97X, reflecting a Value Score of F.
The Zacks Consensus Estimate for IREN’s bottom line in fiscal 2026 is pegged at a loss of 32 cents per share, revised downward over the past seven days, compared to earnings of 4 cents per share in fiscal 2025.
IREN currently carries a Zacks Rank of No. 4, categorized as a Sell rating.
