Iren plans $10 billion AI data center in South Australia, marking Asia-Pacific expansion

Iren Announces First Australian AI Data Center Investment

Iren, the Nasdaq-listed artificial intelligence infrastructure company founded by Australian brothers Daniel and Will Roberts, has signed a transmission connection agreement for an 800-megawatt data center campus in Bundey, South Australia 1

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. The $10 billion project marks the company's first major investment in Australia after establishing operations across Canada and the United States, where IREN Ltd. has built a market capitalization of $23.8 billion 3

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. Located approximately 78 miles northeast of Adelaide in a town with no permanent residents, the South Australian AI data centre represents one of the largest announced facilities in the Asia-Pacific region to date 2

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Strategic Infrastructure and Connectivity Position

The Iren data center Australia project secures direct access to Asia-Pacific AI markets through submarine fiber connectivity linking Singapore, Indonesia, South Korea, and Japan 3

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. The transmission connection agreement provides four 330-kilovolt feeder exits at a utility substation, capable of supporting up to 800MW without requiring network upgrades 3

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. Initial energization is targeted from 2028, with early works and procurement expected to commence following regulatory approvals 2

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. The timing aligns with Microsoft Corporation's recent commitment of A$25 billion to expand AI cloud services and cloud capacity in Australia by 2029, signaling strong demand for GPU infrastructure in the region 2

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Renewable Energy Grid Advantages

South Australia's aggressive transition toward 100% net renewable energy by 2027 positions the facility to attract hyperscaler and AI workloads seeking clean energy credentials 2

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. Daniel and Will Roberts emphasized this advantage, with Co-Founder and Co-CEO Daniel Roberts stating: "South Australia offers what AI infrastructure at scale requires: abundant clean energy, the connectivity to serve the APAC region, and a State Government that understands the opportunity and is acting on it" 3

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. The renewable energy grid integration distinguishes the Bundey campus from competing facilities in regions still dependent on fossil fuel generation.

Market Response and Financial Backing

Macquarie maintained an Outperform rating with a $90 price target on IREN Ltd. following the announcement, while the company has delivered a 649% return over the past year 3

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. Separately, Cantor Fitzgerald raised its price target to $99 from $77, maintaining an Overweight rating based on capacity growth projections showing 670 megawatts expected online in 2027 with additional expansions planned for 2028 3

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. The company recently secured a $3.65 billion financing facility to support its AI Cloud contract with Microsoft Corporation, including a $2.10 billion U.S. private placement and a $1.55 billion delayed draw term loan 3

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. Additionally, Iren finalized a $1.6 billion purchase agreement with Dell for air-cooled Blackwell systems to support its managed services operations 3

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Economic Impact and Job Creation

The 800-megawatt data center campus is expected to create more than 200 ongoing skilled jobs and over 500 positions during construction 3

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. South Australian Premier Peter Malinauskas described the project as "a significant investment in our state, with the potential to create hundreds of construction jobs, support long-term skilled roles, and strengthen South Australia's position as a technology and innovation hub for the Asia-Pacific region" 3

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. The job creation figures matter to regional economies seeking to diversify beyond traditional industries while building technical workforce capabilities that can serve future AI infrastructure demands.