IREN Limited powers up 1.4 GW data center, eyes $3.4B AI revenue by 2026 despite risks

IREN Limited has energized its 1.4 GW Sweetwater 1 data center, reducing risks for expansion and showing strong execution in large infrastructure projects. While the company has underperformed compared to peers, it maintains the cleanest balance sheet among smaller-cap neo-cloud firms and offers an attractive price-to-book ratio. Its long-term growth depends on a secured 4.5 GW power capacity aimed at supporting $3.4 billion in AI-related annual recurring revenue by the end of 2026. Key risks include declining Bitcoin mining revenues and market volatility, but growth in AI cloud services and favorable GPU financing terms support a positive outlook for IREN's stock over the long term.