IREN is going significantly higher if it successfully converts its power and data centers into AI infrastructure. The central thesis is that IREN is increasing both the amount of AI capacity it operates and the revenue it earns from each megawatt. IREN’s Microsoft contract generates approximately $9.70 million in annual revenue per megawatt, while its Nvidia contract generates about $11.33 million per megawatt. Recent contracts are being priced above $20 million per megawatt, with active discussions approaching $25 million per megawatt. This means IREN may eventually earn more than twice as much revenue from the same power capacity compared with its original Microsoft contract. The right side of the chart also shows that IREN is participating in a market where major AI companies are signing multibillion dollar contracts to secure computing capacity. IREN’s Microsoft agreement represents approximately $1.94 billion in annualized contract value, while its Nvidia agreement represents about $680 million per year. The chart compares those contracts with larger agreements involving CoreWeave, Nebius, AWS, and SpaceX, some of which are worth between approximately $2.3 billion and $15 billion annually. This demonstrates that demand for reliable AI computing capacity is large enough to support very long term contracts. IREN is not simply renting out empty data center space but rather providing complete AI infrastructure that includes Nvidia GPUs, networking equipment, cooling systems, electricity, software, and ongoing operations. The company has a five year, $9.7 billion agreement with Microsoft and a five year, $3.4 billion agreement with Nvidia. IREN has also reported approximately $4 billion of contracted annualized revenue for its 2026 capacity, although some of that revenue will only be recognized after the facilities are completed and the GPUs are operating. The company is targeting approximately 480 megawatts of AI cloud capacity in 2026 and 1.2 gigawatts in 2027. This creates the possibility of significant revenue growth because IREN could add more capacity while also earning substantially more revenue per megawatt. Bullish on IREN and if you enjoyed reading this, make sure to follow @MelvinInvests for more AI infrastructure. If you want to see exactly what I'm buying as an analyst at Milk Road Pro, check out the link below and join access to our team full of analysts for just $1.