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    Why IREN (IREN) Is Up 5.7% After Buying 490MW European AI Data Center Capacity – And What's Next

    Simply Wall St·06/19/2026 19:41:25
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    • In recent days, IREN completed its acquisition of Spain-based Nostrum Group/Ingenostrum, adding about 490MW of secured, grid-connected power and marking its first entry into the European AI data center market.
    • This move accelerates IREN’s shift from Bitcoin mining toward vertically integrated AI infrastructure, supported by long-term hyperscaler contracts and an expanded global development pipeline.
    • We’ll now examine how IREN’s European expansion and added 490MW power capacity reshape its investment narrative in AI infrastructure.

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    IREN Investment Narrative Recap

    To own IREN, you have to believe its pivot from Bitcoin mining to AI infrastructure can eventually translate heavy capex and complex buildouts into durable, contract-backed cash flows. The Nostrum deal in Spain adds 490 MW and a European foothold, which supports that thesis but also increases execution and capital intensity. In the near term, the key catalyst remains ramping contracted AI capacity, while the biggest risk is that spending and leverage build faster than operating cash flow can support.

    In this context, Jefferies’ recent initiation of coverage, highlighting IREN’s 6 GW power portfolio and long term contracts with Microsoft and NVIDIA, is particularly relevant. That coverage underscored IREN’s evolution into a vertically integrated AI cloud provider, and Nostrum’s European assets now slot into that same power plus GPUs plus customers story, potentially widening both the opportunity set and the execution hurdles investors need to track.

    Yet against all this growth potential, investors should be aware that rising leverage and ongoing losses could quickly matter if...

    Read the full narrative on IREN (it's free!)

    IREN's narrative projects $5.6 billion revenue and $183.6 million earnings by 2029. This requires 94.7% yearly revenue growth and a $206.1 million earnings decrease from $389.7 million.

    Uncover how IREN's forecasts yield a $70.40 fair value, a 17% upside to its current price.

    Exploring Other Perspectives

    IREN 1-Year Stock Price Chart
    IREN 1-Year Stock Price Chart

    Some of the most pessimistic analysts were already assuming revenue of about US$2.6 billion and earnings near US$301 million by 2029, yet they still see higher regulatory and supply chain risks than the consensus. As an individual investor, you can use those harsher assumptions as a reference point to judge whether new moves like the Nostrum acquisition ease those concerns or make them more pressing.

    Explore 25 other fair value estimates on IREN - why the stock might be worth 31% less than the current price!

    Form Your Own Verdict

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

    • A great starting point for your IREN research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
    • Our free IREN research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IREN's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.