IREN increases Childress power capacity from 600MW to 750MW

Rhea-AI Summary

IREN (Iris Energy ) has secured an additional 150MW of immediately available power capacity at its Childress site, increasing its total secured grid-connected power capacity to 2,310MW. This expansion follows ERCOT's approval of network studies and the execution of an amended connection agreement with AEP.

The company's power capacity outlook now stands at:

• 2024: 910MW immediately available, with 510MW of data centers planned (30 EH/s)
• 2025: 910MW of data centers planned
• 2026: 1,400MW West Texas site on schedule
• 2027-2030: >1GW of additional development pipeline

IREN operates in Bitcoin mining, AI cloud services, and next-generation data centers, utilizing 100% renewable energy sources.

Positive

• Secured additional 150MW of immediately available power capacity at Childress site
• Total secured grid-connected power capacity increased to 2,310MW
• Planned expansion to 30 EH/s in Bitcoin mining capacity by 2024
• Diversified operations including Bitcoin mining, AI cloud services, and next-generation data centers
• 100% renewable energy usage for all operations

Negative

• None.

Insights

Financial Analyst

From a financial perspective, the increase in power capacity from 600MW to 750MW at the Childress site is significant. It means more operational capacity for IREN, which can potentially increase their revenue streams. This additional 150MW can be leveraged for Bitcoin mining and AI cloud services, both of which are high-margin businesses. Furthermore, securing power capacity under favorable terms could mean reduced operating costs in the long run. Investors should be optimistic about this development, considering it aligns with IREN's strategic expansion plans. The rapid increase in power capacity also suggests that the company is scaling efficiently, which can improve its market competitiveness.

Tech Expert

From a technological point of view, the increased power capacity will enable IREN to expand its high-performance and power-dense computing applications. This is particularly relevant for their AI cloud services and Bitcoin mining operations. The additional 150MW can support more GPUs and the expanding AI infrastructure, which is important for staying competitive in the fast-evolving tech landscape. Moreover, the use of 100% renewable energy sources aligns with global trends toward sustainable tech solutions, potentially making IREN more attractive to eco-conscious clients and investors.

Market Research Analyst

Market-wise, IREN’s secured increase in power capacity is a strong signal to stakeholders about the company’s growth trajectory. The approval from ERCOT and the amended connection agreement with AEP indicate regulatory and operational robustness. This positions IREN well in the competitive market of data centers, Bitcoin mining and AI services. The planned expansions and secured power capacity highlight IREN's strategic foresight and ability to scale. Such developments are likely to enhance investor confidence and could lead to increased stock valuations as market demand for renewable energy-powered data centers grows.

SYDNEY, July 24, 2024 (GLOBE NEWSWIRE) -- IREN (Iris Energy Limited) (NASDAQ: IREN) (together with its subsidiaries, "IREN" or “the Company”), a leading next-generation data center business powering the future of Bitcoin, AI and beyond, today provided a business update.

The Company is pleased to announce it has secured an additional 150MW of immediately available power capacity at its Childress site. This increase follows the approval of network studies by ERCOT and execution of an amended connection agreement with AEP.

This increases the Company’s total secured grid-connected power capacity to 2,310MW.

• 2024: 910MW immediately available power
  • 510MW of data centers planned in 2024 (30 EH/s)
  • 910MW of data centers planned in 2025
• 2026: 1,400MW West Texas site on schedule
  • Data center planning underway
• 2027-2030: >1GW of additional development pipeline
  
  

About IREN

IREN is a leading next-generation data center business powering the future of Bitcoin, AI and beyond utilizing 100% renewable energy.

• Bitcoin Mining: providing security to the Bitcoin network, expanding to 30 EH/s in 2024. Operations since 2019.
• AI Cloud Services: providing cloud compute to AI customers, 816 NVIDIA H100 GPUs. Operations since 2024.
• Next-Generation Data Centers: 260MW of operating data centers, expanding to 510MW in 2024. Specifically designed and purpose-built infrastructure for high-performance and power-dense computing applications.
• Technology: technology stack for performance optimization of AI Cloud Services, Bitcoin Mining and energy trading operations.
• Development Portfolio: 2,310MW of secured power capacity across North America, >1,000 acre property portfolio and additional development pipeline.
• 100% Renewable Energy (from clean or renewable energy sources or through the purchase of RECs): targets sites with low-cost & underutilized renewable energy, and supports electrical grids and local communities.

Contacts

Media Jon Snowball Domestique +61 477 946 068 Danielle Ghigliera Aircover Communications +1 510 333 2707

Investors Lincoln Tan IREN +61 407 423 395 lincoln.tan@iren.com

To keep updated on IREN’s news releases and SEC filings, please subscribe to email alerts at https://iren.com/investor/ir-resources/email-alerts.

Forward-Looking Statements

This investor update includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or IREN’s future financial or operating performance. For example, forward-looking statements include but are not limited to the Company’s business strategy, expected operational and financial results, and expected increase in power capacity and hashrate. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “may,” “can,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “target”, “will,” “estimate,” “predict,” “potential,” “continue,” “scheduled” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that statement is not forward-looking. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.

These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause IREN’s actual results, performance or achievements to be materially different from any future results performance or achievements expressed or implied by the forward looking statements, including, but not limited to: Bitcoin price and foreign currency exchange rate fluctuations; IREN’s ability to obtain additional capital on commercially reasonable terms and in a timely manner to meet its capital needs and facilitate its expansion plans; the terms of any future financing or any refinancing, restructuring or modification to the terms of any future financing, which could require IREN to comply with onerous covenants or restrictions, and its ability to service its debt obligations, any of which could restrict our business operations and adversely impact our financial condition, cash flows and results of operations; IREN’s ability to successfully execute on its growth strategies and operating plans, including its ability to continue to develop its existing data center sites and to diversify into the market for high performance computing (“HPC”) solutions, and in particular any current or future AI Cloud (“AI Cloud”) Services we offer; IREN’s limited experience with respect to new markets it has entered or may seek to enter, including the market for AI Cloud Services; expectations with respect to the ongoing profitability, viability, operability, security, popularity and public perceptions of the Bitcoin network; expectations with respect to the profitability, viability, operability, security, popularity and public perceptions of any current or future AI Cloud Services that IREN offers; IREN’s ability to secure and retain customers on commercially reasonable terms or at all, particularly as it relates to its strategy to expand into AI Cloud Services; IREN’s ability to manage counterparty risk (including credit risk) associated with any current or future customers, including customers of our AI Cloud Services and other counterparties; IREN’s ability to secure renewable energy, renewable energy certificates, power capacity, facilities and sites on commercially reasonable terms or at all; the risk that any current or future customers, including customers of our AI Cloud Services, or other counterparties may terminate, default on or underperform their contractual obligations; Bitcoin global hashrate fluctuations; delays associated with, or failure to obtain or complete, permitting approvals, grid connections and other development activities customary for greenfield or brownfield infrastructure projects; our reliance on power and utilities providers, third party mining pools, exchanges, banks, insurance providers and our ability to maintain relationships with such parties; expectations regarding availability and pricing of electricity; IREN’s participation and ability to successfully participate in demand response products and services and other load management programs run, operated or offered by electricity network operators, regulators or electricity market operators; the availability, reliability and/or cost of electricity supply, hardware and electrical and data center infrastructure, including with respect to any electricity outages and any laws and regulations that may restrict the electricity supply available to IREN; any variance between the actual operating performance of IREN’s miner hardware achieved compared to the nameplate performance including hashrate; IREN’s ability to curtail its electricity consumption and/or monetize electricity depending on market conditions, including changes in Bitcoin mining economics and prevailing electricity prices; actions undertaken by electricity network and market operators, regulators, governments or communities in the regions in which IREN operates; the availability, suitability, reliability and cost of internet connections at IREN’s facilities; IREN’s ability to secure additional hardware, including hardware for Bitcoin mining and any current or future AI Cloud Services it offers, on commercially reasonable terms or at all, and any delays or reductions in the supply of such hardware or increases in the cost of procuring such hardware; expectations with respect to the useful life and obsolescence of hardware (including hardware for Bitcoin mining as well as hardware for other applications, including any current or future AI Cloud Services IREN offers); delays, increases in costs or reductions in the supply of equipment used in IREN’s operations; IREN’s ability to operate in an evolving regulatory environment; IREN’s ability to successfully operate and maintain its property and infrastructure; reliability and performance of IREN’s infrastructure compared to expectations; malicious attacks on IREN’s property, infrastructure or IT systems; IREN’s ability to maintain in good standing the operating and other permits and licenses required for its operations and business; IREN ability to obtain, maintain, protect and enforce its intellectual property rights and confidential information; any intellectual property infringement and product liability claims; whether the secular trends IREN expects to drive growth in its business materialize to the degree it expects them to, or at all; the occurrence of any environmental, health and safety incidents at IREN’s sites, and any material costs relating to environmental, health and safety requirements or liabilities; damage to our property and infrastructure and the risk that any insurance IREN maintains may not fully cover all potential exposures; ongoing proceedings relating to the default by two of IREN’s wholly-owned special purpose vehicles under limited recourse equipment financing facilities; ongoing securities litigation relating in part to the default; and any future litigation, claims and/or regulatory investigations, and the costs, expenses, use of resources, diversion of management time and efforts, liability and damages that may result therefrom; IREN's failure to comply with any laws including the anti-corruption laws of the United States and various international jurisdictions; any failure of IREN's compliance and risk management methods; any laws, regulations and ethical standards that may relate to IREN’s business, including those that relate to Bitcoin and the Bitcoin mining industry and those that relate to any other services we offer (such as AI Cloud Services), including regulations related to data privacy, cybersecurity and the storage, use or processing of information; our ability to attract, motivate and retain senior management and qualified employees; increased risks to our global operations including, but not limited to, political instability, acts of terrorism, theft and vandalism, cyberattacks and other cybersecurity incidents and unexpected regulatory and economic sanctions changes, among other things; climate change, severe weather conditions and natural and man-made disasters that may materially adversely affect our business, financial condition and results of operations; public health crises, including an outbreak of an infectious disease (such as COVID-19) and any governmental or industry measures taken in response; our ability to remain competitive in dynamic and rapidly evolving industries; damage to our brand and reputation; expectations relating to Environmental, Social and Governance issues or reporting; the costs of being a public company; and other important factors discussed under the caption “Risk Factors” in IREN’s annual report on Form 20-F filed with the SEC on September 13, 2023 as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations section of IREN’s website at https://investors.iren.com.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this investor update. Any forward-looking statement that IREN makes in this investor update speaks only as of the date of such statement. Except as required by law, IREN disclaims any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

What is IREN's new total secured grid-connected power capacity after the Childress expansion?

After securing an additional 150MW at the Childress site, IREN's total secured grid-connected power capacity has increased to 2,310MW.

How much Bitcoin mining capacity does IREN (NASDAQ: IREN) plan to have by 2024?

IREN plans to expand its Bitcoin mining capacity to 30 EH/s by 2024.

What are the main business segments of IREN (NASDAQ: IREN)?

IREN operates in three main business segments: Bitcoin mining, AI cloud services, and next-generation data centers.

How much power capacity does IREN (NASDAQ: IREN) have immediately available in 2024?

IREN has 910MW of immediately available power capacity in 2024.

What is IREN's (NASDAQ: IREN) energy sourcing policy for its operations?

IREN utilizes 100% renewable energy for all its operations, sourced from clean or renewable energy sources or through the purchase of RECs.