Key Highlights
- IREN (IREN) shares climbed 27% following the announcement of a major collaboration with Nvidia (NVDA) for deploying as much as 5 gigawatts of artificial intelligence infrastructure
- Nvidia secured a five-year warrant to purchase up to 30 million IREN shares at a strike price of $70, representing a possible $2.1 billion stake
- IREN’s two-gigawatt Sweetwater facility in Texas will be the primary location for rolling out Nvidia’s DSX technology platform
- Separately, IREN announced plans to purchase Spain-based data center firm Ingenostrum (Nostrum Group), establishing its first European presence
- The Spanish deal contributes 490 megawatts of grid-connected capacity, expanding IREN’s overall power portfolio to 5 gigawatts
IREN Limited (IREN) witnessed a 27% surge in after-hours trading on May 7 following back-to-back major corporate announcements.
The company revealed a strategic alliance with Nvidia (NVDA) aimed at building out up to 5 gigawatts of AI-focused infrastructure. Simultaneously, IREN disclosed its agreement to purchase Ingenostrum, a data center development company based in Spain and also referred to as Nostrum Group.
Prior to the news breaking, IREN shares were hovering near $56. The after-hours session saw a sharp rally as investors responded enthusiastically to both developments.
The collaboration with Nvidia focuses on rolling out DSX-optimized accelerated computing infrastructure throughout IREN’s worldwide data center network. Both firms will collaborate on compute resources, networking technology, software solutions, power infrastructure, and operational management.
IREN’s Sweetwater facility in West Texas will play a central role in this initiative. With two gigawatts of available capacity, the location is positioned to become the flagship demonstration site for Nvidia’s DSX AI factory architecture.
Jensen Huang, founder and CEO of Nvidia, remarked that AI factories are emerging as critical infrastructure for the worldwide economy, noting that IREN possesses the necessary scale and capabilities to expedite this expansion.
Under the terms of the partnership, IREN issued Nvidia a five-year warrant enabling the purchase of up to 30 million shares at $70 apiece. While this could amount to a $2.1 billion investment, the arrangement remains contingent on regulatory clearances and additional requirements.
IREN Enters European Market
Concurrent with the Nvidia announcement, IREN revealed its agreement to acquire Ingenostrum, S.L., a data center developer headquartered in Spain. This transaction represents the company’s inaugural expansion into Europe.
The acquisition delivers 490 megawatts of secured, grid-connected electrical capacity in Spain, accompanied by additional development opportunities and an experienced local team specializing in engineering, construction, and operational management.
Following this transaction, IREN’s cumulative power capacity reaches 5 gigawatts spanning its international operations. The deal remains subject to customary closing requirements.
Analyst Perspectives
Wall Street analysts have maintained an optimistic outlook on IREN ahead of these developments. The stock holds a Strong Buy consensus based on six Buy recommendations and one Hold rating issued within the last three months.
The consensus analyst price target stands at $78.43, suggesting approximately 39% potential appreciation from pre-announcement price levels.
The dual impact of the Nvidia partnership and the European acquisition positions IREN with significantly expanded power capacity and a more defined strategy for scaling its AI Cloud infrastructure across international markets.
IREN’s two-gigawatt Sweetwater complex in Texas continues to be fundamental to the company’s immediate growth strategy, now enhanced by its collaboration with Nvidia to maximize deployment efficiency at the site.
