$$IREN (-14,55%)
H100 rental prices double for multi-year contracts, while compute demand exceeds supply
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đź“Ś Key Findings
• GPU Prices: Older H100 GPUs were re-leased at twice the rental rates, with multi-year contract terms.
• Unit Economics: Higher GPU costs are passed directly on to customers. Payback periods remain stable or even shorten.
• CapEx Discipline: Investments are being deliberately curtailed due to financing costs and capital availability, not because of weaker demand.
• GPU Procurement: IREN prioritizes land, power capacity, and data centers over the premature purchase of all GPUs planned for 2027.
• NVIDIA: Collaborating on power management software that could enable more GPUs per connected MW.
• Microsoft: Network adjustments affect 200 MW; additional CapEx is insignificant, according to management. Horizon 2 is already powered up and equipped; Horizon 3 has GPUs on site; Horizon 4 is expecting further deliveries.
• Summary: By June 2027, ~$25 billion in data center and GPU assets are expected, including ~$10 billion in largely unencumbered data center assets.