Iren secures $500 million in annual recurring revenue from its Horizon 1 data center, reducing near-term capital-raising needs.
Iren (NASDAQ: IREN) announced its Horizon 1 data center is operational, delivering $500 million in annual recurring revenue over five years under a Microsoft (NASDAQ: MSFT) lease. The deal eases investor concerns over the company’s heavy debt financing for AI infrastructure build-outs.
The Horizon 1 site is the first of four 50-megawatt facilities under a 2023 agreement. Once all four are operational, they will generate $1.94 billion annually. Iren has relied on bond sales to fund expansions but expects reduced financing needs as revenue materializes.
CEO Dan Roberts confirmed Horizon sites 2, 3, and 4 are on track for delivery later this year. The company’s ability to meet deadlines and convert AI capacity into revenue addresses prior skepticism about execution risks.