Jefferies expects IREN’s AI cloud business to outpace data center leasing, sees 30% upside

Editorial Team·June 19, 2026·Updated: June 19, 2026·2 min read·Source: The Block

Jefferies estimates that only about 10% of IREN's roughly 6 gigawatt global power portfolio is being utilized.

TL;DR: Jefferies has estimated that IREN's AI cloud business is expected to outpace its data center leasing segment, forecasting a **30% upside**. Currently, about **10%** of IREN's **6 gigawatt** global power portfolio is being utilized.

Jefferies' Forecast for IREN

Market analysts at Jefferies have identified a promising trend in the AI and cloud computing sectors, particularly focused on IREN. According to their latest estimates, IREN's **AI cloud business is likely to outpace its data center leasing** operations, potentially leading to a remarkable **30% upside** in its market performance.

Underutilization of Global Power Portfolio

IREN currently has a **global power portfolio of approximately 6 gigawatts**. However, Jefferies notes that only about **10%** of this capacity is being effectively utilized. This underutilization highlights both a challenge and an opportunity for IREN as it seeks to expand its cloud computing capabilities.

The analysts argue that IREN's transition to an AI cloud-driven business model could place it ahead of competitors in the fast-evolving tech landscape. As more companies leverage AI technologies and cloud solutions, the demand for robust computing power is expected to increase significantly. **This demand could translate into higher utilization rates of IREN’s power capacity.**

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Implications for Investors

For investors, jeffries' outlook on IREN presents both opportunities and risks. The projected **30% upside** suggests a bullish sentiment around the company’s future performance. However, the current underutilization levels raise concerns about operational efficiency and management strategy. Investors will need to closely monitor how IREN addresses these issues and capitalizes on its **AI cloud business** potential.

As the **AI sector continues to grow**, companies involved in providing infrastructure and services to support this evolution may see considerable benefits. Stakeholders will be particularly interested in how IREN adapts to capitalize on the anticipated surge in demand for AI-capable resources.

Conclusion

In summary, Jefferies’ forecast paints an optimistic future for IREN, driven by the growth of its AI cloud business. The estimates of its underutilization of current assets could mean that significant room for improvement exists. As the landscape of **AI and cloud services** evolves, IREN is in a favorable position to adapt and thrive.