AI Data Center Deals Boost TeraWulf and IREN
💡 Key Takeaway
TeraWulf's $19B Anthropic lease and IREN's potential Australian deal signal massive growth in AI infrastructure demand.
What Happened: AI Giants Lock in Data Center Capacity
Shares of TeraWulf (WULF) and IREN (IREN) surged on Monday after major AI company Anthropic signed a massive 20-year lease with TeraWulf for 401 megawatts of computing power at its Kentucky data center. The deal, valued at $19 billion in contracted revenue, is expected to go online in the second half of 2027.
TeraWulf also sold its 50.1% stake in the Abernathy Joint Venture to an investor group led by Fluidstack, generating a profit on its $450 million investment and freeing up cash for future AI projects.
Separately, news broke that Anthropic is seeking at least 1.4 gigawatts of data center capacity in Australia, with a deal potentially worth up to $15 billion. IREN is reportedly a leading candidate to secure a portion of this project.
Freedom Capital Markets analyst Paul Meeks upgraded IREN from hold to buy, setting a $58 price target and projecting revenue growth from $717 million this year to $8.5 billion by fiscal 2028.
Why It Matters: AI Infrastructure Boom Is Real
These deals confirm that AI companies are aggressively locking in long-term computing capacity, which is a huge tailwind for data center operators like TeraWulf and IREN. The $19 billion contract for TeraWulf provides a clear, multi-year revenue stream that validates its business model.
For IREN, the potential Australian deal could be transformative, adding billions in revenue and justifying the analyst's bullish outlook. The upgrades and price targets suggest Wall Street sees these companies as key beneficiaries of the AI buildout.
Investors should watch for further announcements from Anthropic and other AI leaders, as more capacity deals could lift the entire data center sector. However, execution risk remains, as these projects take years to come online.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Both WULF and IREN are strong buys on AI infrastructure demand.
The massive scale of these deals shows AI companies are willing to commit billions for computing capacity. TeraWulf's locked-in revenue and IREN's growth potential make them attractive. However, investors should monitor project timelines and execution.
What This Means for Me
