The data center operator is pushing its goal for more than $4B in fully contracted and funded annualized revenue from the end of this year to January 2027, with the target potentially sliding into February. IREN attributed the delay to supplier timing and a request from Microsoft to implement network design changes at its Horizon facilities. The announcement came during a Q1 earnings call where IREN reported a $263M net loss, though its quarterly revenue of $228M slightly exceeded the $221M expected by analysts.
The revenue delay follows disclosure that Microsoft reduced its third-quarter capital spending by about $5B after third-party data center capacity was not ready on time, including a site developed by IREN in Texas. While IREN stated that the first of its Horizon sites was delivered to Microsoft in August and is currently in service, Microsoft has recently intensified oversight of “neocloud” builders and is debating whether to sign new third-party cloud deals. IREN currently holds a revenue backlog of $20.3B, of which roughly two-thirds is from investment-grade counterparties.