Hut 8 fully commercializes 1 GW Texas AI campus with second $9.8B lease; IREN signs $2.8B in contracts as both companies pivot from mining to AI infrastructure.
AI & Agents ·
IREN announced on July 20 that it had secured $2.8 billion in multi-year AI cloud service contracts with leading developers, lifting its annualized AI cloud revenue target for the end of 2026 to more than $4 billion. The customer roster now includes Microsoft, NVIDIA, Perplexity, Figure AI, and other frontier AI labs. Meanwhile, Hut 8 completed the commercial buildout of its 1 GW Beacon Point facility in Texas through a second 15-year lease valued at $9.8 billion, marking a major expansion of both companies beyond their traditional cryptocurrency mining operations.
The deals underscore accelerating demand for large-scale compute infrastructure. IREN's pipeline expanded from roughly 3 megawatts of self-built capacity a year ago to 480 megawatts expected by year-end 2026, with 1.2 gigawatts targeted for 2027. Approximately 85 percent of IREN's elevated revenue target is now under contract, and recent customer agreements include prepayments covering roughly 45 percent of associated GPU spending, reducing the company's capital burden. The weighted average contract term stands at approximately four years.
Key uncertainties remain around execution. IREN's $4 billion-plus revenue target rests on assumptions regarding GPU models, utilization rates, and pricing, with revenue contingent on commissioning and customer acceptance of hardware in the months following each delivery. The extent to which prepayment terms will persist in future contracts is also unconfirmed.