In a significant development for the tech industry, Iris Energy (IREN) has recently achieved preferred partner status with Nvidia, setting the stage for a substantial influx of over 9,000 Nvidia GPUs in the upcoming months. This news has spurred investor enthusiasm, prompting a more than 10% surge in Iris Energy’s stock during premarket trading on Tuesday.
The excitement surrounding Iris Energy coincides with a major milestone for fellow industry player Nebius, which has secured a multi-billion-dollar AI infrastructure deal with Microsoft. Under this multi-year agreement, Nebius will provide dedicated GPU infrastructure from its newly established data center in Vineland, New Jersey, with operations set to commence later this year. The GPU services outlined in the contract are expected to roll out between 2025 and 2026, with the total contract value estimated at approximately $17.4 billion through 2031. Additionally, there is potential for Microsoft to expand its services and capacity under the agreement, which could elevate the contract’s worth to about $19.4 billion.
Iris Energy stands out in the sector with its commitment to renewable energy. The company is currently operating five data center locations in the U.S. with an installed capacity of 810 megawatts and has ambitious expansion plans, with an additional 2.1 gigawatts under construction and over 1 gigawatt in the planning stages. This growth not only reinforces Iris’s sustainability goals but also positions it strategically for the increasing demand for GPU services driven by sectors like AI and cryptocurrency mining.
Investor sentiment towards Iris Energy has been notably positive, as evidenced by a spike in discussions on Stocktwits, where sentiments skewed heavily towards ‘bullish’ at the time. The company also reported impressive financial results, with August revenues reaching $79 million. CEO Daniel Roberts highlighted that retrofitting efforts at the Prince George campus are on track to support the company’s expansion, particularly noting advancements in the construction of a new liquid-cooled data center designed for the NVIDIA GB300 NVL72 systems.
The optimism extends beyond current operations, with some traders expressing expectations of robust future growth. One user on Stocktwits speculated, “This is a $50 stock,” while another projected that Iris Energy’s Q4 results in 2026 would reflect a 100% revenue growth compared to Q4 2025. In a year where Iris Energy’s stock price has more than doubled, market watchers are closely monitoring developments as the company capitalizes on its advantageous position within the thriving tech landscape, particularly amid increasing interest in AI.
