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

Iren plans $10 billion South Australian AI data centre

Iren, the Nasdaq-listed artificial intelligence data centre operator run by Australian brothers Daniel and Will Roberts, will build a $10 billion data centre in South Australia, marking its first major investment in the country. Iren has built data centres in Canada and the United States and created a $US24 billion ($33.5 billion) company, and has now struck a deal with the South Australian government to build its first local data centre in Bundey, a town with no residents located 165 kilometres north-east of Adelaide.

Iren stock holds Outperform rating at Macquarie on Australia site By Investing.com

Investing.com - Macquarie reiterated an Outperform rating and $90.00 price target on IREN Ltd. (NASDAQ:IREN) following the company's announcement of its first planned Australian AI data center. The site is located approximately 78 miles northeast of Adelaide and represents one of the largest announced data centers in the Asia-Pacific region to date. The high-voltage transmission connection will be secured via four 330kV feeder exits into the utility substation, with initial energization targeted from 2028. The Bundey campus provides direct exposure to the Asia-Pacific AI market through submarine fiber connectivity to key demand hubs including Singapore, Indonesia, South Korea, and Japan. Microsoft recently committed A$25 billion to expand in-country AI and cloud capacity in Australia by 2029. South Australia's grid transition towards 100% net renewable energy by 2027 enhances the site's attractiveness for hyperscaler and AI workloads. The project is expected to create approximately 200 ongoing jobs and more than 500 construction positions. The campus expands IREN's global development footprint into Asia-Pacific. Early works and procurement are expected to commence following regulatory approvals. In other recent news, IREN Limited announced a significant development with the signing of a transmission connection agreement for an 800-megawatt data center campus in Bundey, South Australia. This marks the company's first data center project in Australia and one of the largest in the Asia-Pacific region. Additionally, IREN's wholly owned subsidiary, IE US Hardware 3 LLC, secured approximately $3.6 billion in financing agreements to support GPU infrastructure for a contract with Microsoft Corporation. The financing includes a $1.5 billion term loan facility and $2.1 billion in senior notes, with the funds intended to support data center facilities in Childress, Texas. IREN Limited also announced the closing of a $3.65 billion investment-grade GPU financing facility to fulfill its AI Cloud contract with Microsoft. The financing package comprises a $2.10 billion U.S. private placement and a $1.55 billion delayed draw term loan. In related news, Canaccord raised its price target for IREN shares from $70 to $79, maintaining a Buy rating, reflecting the increased value of the company's Microsoft project. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

IREN signs agreement for 800MW data center in South Australia By Investing.com

ADELAIDE, Australia - IREN Limited (NASDAQ:IREN) announced today the signing of a transmission connection agreement for a planned 800-megawatt data center campus in Bundey, South Australia, according to a press release statement. The facility, located approximately 78 miles northeast of Adelaide, represents the company's first announced data center project in Australia. The transmission connection agreement secures four 330-kilovolt feeder exits at a utility substation, expected to support up to 800MW without requiring network upgrades. IREN stated energization is on track to commence from 2028. The company expects to begin early works and procurement in parallel with obtaining regulatory approvals and satisfying conditions under the transmission connection agreement. The project is expected to create more than 200 ongoing skilled jobs and over 500 positions during construction, according to the company. The site will have submarine fiber connectivity to Singapore, Indonesia, South Korea, and Japan. South Australia's grid targets reaching 100% net renewable energy by 2027. "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," said Daniel Roberts, Co-Founder and Co-CEO of IREN. Peter Malinauskas, Premier of South Australia, said the project "represents 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." IREN describes itself as a vertically integrated AI Cloud provider delivering data centers and GPU clusters for AI training and inference, with operations across North America, Europe, and Asia-Pacific. The company commands a market capitalization of $23.8 billion and has delivered a remarkable 649% return over the past year. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value -- a finding that places it among companies on the platform's Most Overvalued list. The company remains profitable with revenue growth exceeding 100% in the last twelve months, supported by a strong current ratio of 3.72 that positions it well to fund ambitious infrastructure projects like the Bundey campus. In other recent news, IREN Limited has made significant financial and strategic moves to support its growth initiatives. The company announced the closure of a $3.65 billion financing facility, which will aid in delivering its AI Cloud contract with Microsoft. This financing includes a $2.10 billion U.S. private placement and a $1.55 billion delayed draw term loan, with a blended cost of debt at 6.00%. Additionally, IREN has secured a $1.6 billion purchase agreement with Dell for air-cooled Blackwell systems, which will support its $3.4 billion managed services AI cloud contract. In another development, IREN has acquired the marketing agency Awaken, integrating its team into IREN's operations, with Awaken's founder Chris Parker now leading IREN's brand and marketing strategy. On the financial analysis front, Cantor Fitzgerald has raised its price target for IREN to $99 from $77, maintaining an Overweight rating. This upgrade is attributed to IREN's capacity growth, with 670 megawatts of capacity expected to come online in 2027 and additional expansions planned for 2028. These recent developments underscore IREN's strategic focus on expanding its technological capabilities and market presence. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.