IREN Business Update

Core Insights - Iris Energy Limited (IREN) is expanding its AI Cloud Services and data center capabilities, with significant profit contributions expected from its hardware operations by the end of 2024 [2][14]. AI Cloud Services - IREN's AI Cloud Services division is projected to generate approximately $32 million in annualized hardware profit by December 2024, contributing around 10% to the company's overall earnings [2]. - The current fleet of 816 NVIDIA H100 GPUs is nearing full utilization, with pending contracts expected to cover the remaining capacity [2]. - IREN plans to commission an additional 1,080 NVIDIA H200 GPUs in Q4 2024, more than doubling its existing AI capacity [3]. - AI Cloud Services currently utilize less than 0.5% of IREN's total data center capacity, indicating significant room for scalability as new customer contracts are secured [3]. Data Center Expansion - The target energization date for IREN's 1.4GW substation at its West Texas data center project has been moved forward to April 2026, earlier than the original date of October 2026 [4]. - IREN has engaged an EPC contractor to develop its high and medium-voltage substation infrastructure, with ongoing work on design and specifications [4]. - The company has secured 800 additional acres of land, increasing its total landholding to over 1,300 acres [5]. Financial Metrics - The calculations for AI Cloud Services assume a power draw of 1.25kW per GPU and electricity costs of $0.045/kWh, with a revenue assumption range of $2.00 - $2.50 per GPU hour [6]. - Bitcoin mining is expected to generate $317 million in illustrative annualized exit run-rate hardware profit by the end of 2024, significantly higher than the AI Cloud Services profit [6]. Renewable Energy Commitment - IREN is committed to utilizing 100% renewable energy for its operations, targeting sites with low-cost and underutilized renewable energy [16].