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SYDNEY – IREN Limited (NASDAQ: IREN), a $1.58 billion market cap company specializing in renewable energy-powered data centers, has solidified its position in the competitive data center market with a new 600-megawatt (MW) grid connection agreement. The company, which boasts impressive gross profit margins of 90%, has demonstrated strong revenue growth of 133% over the last twelve months. According to InvestingPro analysis, IREN currently trades near its Fair Value, with 14 additional ProTips available for subscribers. This development advances the company’s Sweetwater data center hub in West Texas, which is now poised to offer a total capacity of 2 gigawatts (GW).
The company’s Co-Founder and Co-CEO, Daniel Roberts, emphasized the importance of the agreement, stating that IREN’s 2.75GW capacity in West Texas is fully contracted, which minimizes development risk and guarantees deliverable capacity. The Sweetwater 2 site, strategically located over 500 acres near the existing 1.4GW Sweetwater 1 facility, is expected to further enhance IREN’s competitive edge by offering scalable infrastructure optimized for artificial intelligence (AI) and cloud workloads.
The secured 600MW under the binding grid connection agreement involves $4.1 million in non-refundable connection costs, along with $26.9 million in refundable deposits to be paid over the next 12 months. The energization of Sweetwater 2 is scheduled for late 2027, following the anticipated operation of Sweetwater 1 in April 2026. While InvestingPro data indicates the company is currently burning through cash rapidly, analysts expect IREN to become profitable this year, with an EPS forecast of $0.22 for 2025.
IREN is actively engaging with global AI and cloud computing firms to align its infrastructure with market demand. The next phase includes fiber interconnections, data center colocation agreements, and procurement in preparation for the operational launch of the two data center facilities.
This press release statement also contains forward-looking statements that outline IREN’s business strategy and future plans. These statements are subject to various risks and uncertainties that could affect the company’s actual results. The company cautions that the statements are not guarantees but are indicative of management’s current expectations.
IREN, known for leveraging 100% renewable energy, has been operational since 2019 and expanded into AI cloud services in 2024. With a development portfolio that includes 2,910MW of grid-connected power across North America and a property portfolio exceeding 2,000 acres, IREN is positioning itself as a leader in the next generation of data centers designed for high-performance computing applications. For deeper insights into IREN’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, IREN Ltd. reported a robust profit margin of 70% for its mining hardware in February 2025, generating $43.9 million in revenue from mining 3,459 Bitcoin, with electricity costs amounting to $13.0 million. Cantor Fitzgerald maintained its Overweight rating for IREN, noting a significant year-over-year revenue increase of 189% in the second fiscal quarter of 2025, driven by the production of 1,347 Bitcoin. The firm’s analyst highlighted IREN’s fleet efficiency improvements, achieving 15 joules per terahash, the lowest among publicly traded companies. JPMorgan also upgraded IREN’s stock rating from Neutral to Overweight, despite reducing the price target to $12.00, citing optimism about IREN’s hashrate expansion and high-performance computing roadmap. In terms of infrastructure, IREN is advancing its 1.4GW Sweetwater 1 project, with energization planned for April 2026, and is finalizing a connection agreement for the 600MW Sweetwater 2 project. The company’s AI Cloud Service is nearing full capacity, reflecting strong demand for NVIDIA GPUs. Cantor Fitzgerald adjusted IREN’s price target to $20.00, emphasizing the company’s plans to increase its operating hashrate to 50 EH/s within the next four months. Additionally, IREN’s recent SEC filing confirmed its compliance with regulatory requirements, providing insights into its operational health without offering forward-looking statements.
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