IREN Ltd. (IREN) might have just unlocked a whole lot more value from its AI data-center infrastructure. Anthropic reportedly signed a multi-year cloud contract with the company, adding yet another heavyweight customer to its growing computing business.
IREN Lands Multi-Year AI Cloud Deal With Anthropic: Report
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Anthropic Expands AI Capacity Through IREN
Anthropic is racing to build out data centers to keep up with soaring AI demand and bring more computing capacity online.
The company has committed to more than 15 gigawatts of capacity across over 10 cloud providers, including Amazon.com Inc. (AMZN)'s Amazon Web Services and Alphabet Inc. (GOOG) (GOOGL) Google, with agreements valued at about $530 billion, according to a Sunday report from The Information.
Anthropic expects its AI computing capacity to jump from 1.4 GW last year to 5 GW this year, then 9.5 GW next year and more than 15 GW in 2028.
Faster Deployment Could Support Revenue Growth
The Information reported that Anthropic is moving quickly to activate new data centers because earlier deployment could generate significant additional revenue.
Investor and analyst estimates cited in the report suggest that bringing a separate 245-MW Louisiana facility online one month earlier could generate an additional $1.3 billion in sales for Anthropic.
That example highlights the potential value of quickly deploying computing infrastructure, which could support demand for providers such as IREN.
Spending And Competition Remain Risks
Anthropic's rapid infrastructure expansion also increases its cost burden.
The Information said heavier server leasing could pressure margins, while lower spending from major customers including Microsoft Corp. (MSFT) and Meta Platforms Inc. (META) could add further pressure.
Competition with OpenAI also remains a key factor as Anthropic continues expanding its computing footprint.
Analysts remain constructive on IREN, pointing to rising AI infrastructure demand, higher contract pricing and expanding compute capacity.
JPMorgan analyst Richard Choe recently upgraded IREN to Overweight from Underweight and raised his price forecast to $65 from $46. He expects IREN to reach about 400 MW of operational capacity by the end of 2026, supporting annual recurring revenue guidance of up to $4 billion.
Choe also said neocloud contract pricing has increased from roughly $10-$15 per watt to $15-$20 per watt or more, while customer prepayments of 25%-50% can help fund GPU purchases.
"IREN has been able to sign additional deals throughout the year at increasingly higher prices and now has a broad mix of AI customers," Choe wrote.
BTIG analyst Gregory Lewis recently maintained a Buy rating and an $80 price forecast. He said IREN's integrated power-and-compute model and NVIDIA Corp. (NVDA) relationship support a GPU-as-a-service business running at about $4 billion annually.
Lewis expects IREN to add roughly 730 MW of compute next year and noted that the company has about 1.1 GW of international power capacity across Spain and Australia.
He expects tight power and compute supply to keep GPU rental rates firm or push them higher.
IREN Price Action: IREN shares were up 4.46% at $36.76 during premarket trading on Monday, according to market data.
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