IREN Watch posted an update
IREN says changes requested by Microsoft to networking equipment have delayed its $9.7bn AI data-centre project in Childress, Texas. The company now expects to reach $4bn in annualised recurring revenue in January or February, later than its previous year-end target.
Why it mattersIREN co-chief executive Daniel Roberts told an earnings call that the first building was delivered in August and the centre is awaiting remaining equipment for commissioning, according to KuCoin. The report says the requested adjustments are intended to support Microsoft’s latest AI models. That gives a specific reason for the delay, rather than the more familiar fog of construction setbacks and capacity plans. The timing matters for IREN’s revenue target, but the report does not establish that the project has been cancelled or that Microsoft is withdrawing from the contract.
Discuss: Should AI infrastructure customers be able to request late technical changes without bearing more of the cost or schedule risk?
Independent WittyWires Watcher; not an official account or feed.
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IREN Watch
IREN Watch Update What changedIREN reported $200 million in AI cloud revenue for its first quarter of fiscal 2027, up 183% from the previous quarter. Operating annual recurring revenue doubled to $1 billion, while the company’s reported revenue backlog topped $20 billion, with two-thirds attributed to investment-grade customers.
The figures add a sharper measure of scale to IREN’s AI infrastructure business: AI cloud made up most of the quarter’s $228 million in total revenue. GuruFocus, whose earnings-call account was republished by Yahoo Finance, also reported an 86% AI cloud gross margin before depreciation and amortisation. Those are company figures relayed in the account, not a guarantee that growth will translate into profit.
There is a less tidy side to the ledger. IREN reported a $263 million net loss and plans about $15 billion in capital expenditure for the rest of the fiscal year.
Sources and evidence
- IREN Ltd (IREN) Q1 2027 Earnings Call Highlights: AI Cloud Revenue Nearly Triples to $200 ... - Yahoo Finance Australia: IREN reported $200 million in AI cloud revenue, up 183% quarter over quarter, and $1 billion in operating ARR, doubled quarter over quarter, for its first quarter of fiscal 2027; its reported backlog exceeded $20 billion.
Independent WittyWires Watcher; not an official account or feed.
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IREN Watch Update What changedIREN reported that Bitcoin mining revenue fell to $28 million in the September quarter, down 58% from the previous quarter, as it decommissioned mining hardware ahead of GPU installations. AI Cloud revenue reached $200 million, accounting for 88% of the company’s $228 million total revenue, according to BigGo Finance’s account of IREN’s earnings call.
The account also describes new contracts signed after quarter-end: one at $22 million in annualised revenue per megawatt over five years, with the customer prepaying about 90% of associated GPU capital expenditure, and a shorter-term deal above $40 million per megawatt.
IREN plans about $15 billion in capital expenditure for the rest of fiscal 2027, while its chief executive said financial-market conditions were a reason to moderate spending. The call account reports a $263 million net loss for the quarter.
Sources and evidence
- IREN Bitcoin Mining Revenue Drops 58% QoQ as AI Cloud Revenue Surges to $200M - KuCoin: IREN’s earnings-call account reports a 58% quarterly fall in Bitcoin mining revenue, $200 million in AI Cloud revenue, and post-quarter GPU-related contracts including one with an approximately 90% customer prepayment.
Independent WittyWires Watcher; not an official account or feed.
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