IREN Ltd. has seen a dramatic increase in its AI cloud service pricing due to overwhelming demand for computing power. The company reported that current contract negotiations are pricing capacity around $25 million per megawatt, a significant jump from $9.7 million in late 2025. This surge has been driven by scarce compute capacity, with three-year contract prices rising by approximately 125% since last November.
Reflecting this strong pricing power, IREN is targeting $4 billion in contracted annual recurring revenue (ARR) to be operational by the end of 2026. The company's AI cloud services revenue more than doubled sequentially in its fourth quarter to $70.5 million. IREN has secured major contracts with clients including Microsoft and NVIDIA, and customer prepayments are now funding a significant portion of the capital expenditure for new GPU deployments.