IREN shares rise 4% as it announces 800MW AI data center in Australia

IREN is set to build a significant AI data center in South Australia, projected to be operational by 2028.

IREN (IREN) shares rose over 4% in pre-market trading after revealing plans for an 800-megawatt data center campus in South Australia. This marks IREN's first major venture in Australia and is positioned as one of the largest AI infrastructure projects in the Asia-Pacific region.

The company secured a high-voltage grid connection that will provide the necessary power for the campus without requiring major upgrades to the existing network. IREN anticipates starting initial operations in 2028, contingent upon regulatory approvals and other prerequisites.

The new facility will also include submarine fiber connectivity to major Asia-Pacific markets, including Singapore, Indonesia, South Korea, and Japan. IREN's management highlighted the growing demand for AI infrastructure in the region, addressing a gap between rising computing needs and current supply.

South Australia's goal of achieving 100% net renewable energy by 2027 further supports this project's viability. Co-Founder and Co-CEO Daniel Roberts noted that the initiative capitalizes on abundant renewable energy resources, international connectivity, and a supportive regulatory environment. The project is expected to create over 500 construction jobs and more than 200 permanent skilled positions upon completion.

Roberts also reiterated the company's long-term strategy, which involves owning power sources, land, and data centers as part of its AI-focused approach.