IREN Has Surged More Than 400% On AI Power Pivot. Here’s Where The Bitcoin Miner Is Headed Next.

About this video

• Video Title: IREN Has Surged More Than 400% On AI Power Pivot. Here’s Where The Bitcoin Miner Is Headed Next.
• Channel: Investor's Business Daily
• Speakers: Kent Draper, Clara Okconor
• Duration: 13:49

Overview

This video discusses how Iris Energy (IREN), formerly a Bitcoin miner, is pivoting to power the AI revolution. It highlights the increasing demand for electricity driven by AI, the challenges of meeting this demand, and how companies like IREN are uniquely positioned to capitalize on this shift due to their existing infrastructure for power, land, and data centers. The discussion also touches on the company's strategic priorities and future growth areas.

Key takeaways

• AI's Growing Electricity Demand: US data centers are projected to consume 9% of the nation's electricity by 2030, more than doubling current levels, driven significantly by AI's intense power needs.
• Bitcoin Miners' Pivot to AI: Many Bitcoin miners are repurposing their sites and infrastructure to power AI workloads, partnering with tech giants as they control massive energy contracts and power-dense facilities.
• IREN's Strategic Advantage: IREN, formerly Iris Energy, has a long-term strategy focused on providing real-world infrastructure for the digital space, including AI and machine learning. They are vertically integrated, owning their land, data center infrastructure, and power connections, which differentiates them from competitors.
• Focus on AI Cloud Services: IREN's primary capex spend is on expanding its AI cloud services, offering GPU as a service. They have secured significant GPU capacity, with many units already contracted before arrival.
• Power as a Major Constraint: Access to land and grid-connected power remains the biggest bottleneck for building new data centers. The development timeline for new power infrastructure has extended from 2-3 years to 5-7 years, making companies with secured power, like IREN, highly valuable.
• Future Growth Areas: IREN is expanding its air-cooled fleet in British Columbia and building liquid-cooled facilities in Texas, positioning itself to host a significant number of high-end GPUs and serve hyperscalers and large AI labs.