IREN Acquires Spanish AI Data Center, Adds 490 MW Capacity
Lawrence Jengar Jun 16, 2026 09:26
IREN's Nostrum Group acquisition adds 490 MW in Spain, marking its entry into Europe's growing AI cloud market amid a strategic shift from Bitcoin mining.
IREN Limited (NASDAQ: IREN), a former Bitcoin mining heavyweight pivoting toward AI cloud infrastructure, announced its acquisition of Spain’s Nostrum Group on June 16. The deal grants IREN access to 490 megawatts (MW) of secured, grid-connected power in Spain, alongside a development pipeline and a team of 50 engineers and operators. This marks the company’s first foray into Europe as it expands its AI cloud business.
IREN co-founder and co-CEO Daniel Roberts highlighted Spain's renewable energy resources and strong fiber connectivity as key draws for the acquisition. "Europe is one of the largest and fastest-growing markets for AI infrastructure, and Spain is among its most compelling entry points," Roberts noted in a statement.
With the addition of the Spanish capacity, IREN’s global power portfolio now stands at approximately 5 gigawatts (GW), with Spain contributing 10% of that total. This move aligns with a broader industry trend of Bitcoin miners repurposing their infrastructure for AI workloads. Competitors like HIVE Digital and Bitdeer have similarly invested in European AI data centers in recent months, targeting the region's accelerating demand for AI computing power.
AI Cloud Revenue Surging Amid Mining Headwinds
IREN’s pivot to AI cloud services comes as its Bitcoin mining business faces profitability challenges. For the quarter ending March 31, 2026, the company reported $33.6 million in AI cloud revenue, a 94% increase quarter-over-quarter. Meanwhile, Bitcoin mining revenue fell to $111.2 million, down from $167.4 million in the previous quarter, due to lower Bitcoin prices and hardware decommissioning.
The AI cloud business is supported by long-term contracts, such as a $3.4 billion agreement with NVIDIA announced in May 2026, which includes a strategic partnership targeting $3.7 billion in annualized revenue by 2027. IREN has also committed $1.6 billion to purchase NVIDIA Blackwell systems from Dell, further solidifying its position in the AI cloud market.
Analysts at Bernstein have suggested that IREN could eventually phase out much of its Bitcoin mining operations, leveraging its existing infrastructure for AI cloud computing. As of March 31, the company reported having 150,000 GPUs installed or on order, positioning it to compete in the $37 billion AI cloud market.
Strategic Shift Boosts Market Confidence
IREN’s strategic shift has captured investor attention as the AI sector continues to grow. Europe's AI infrastructure market is particularly attractive given its regulatory environment and demand from major enterprises. The transition also diversifies IREN’s revenue streams, reducing its dependency on the volatile crypto market.
IREN stock could see increased interest as its AI ambitions materialize. Current market data as of June 16 shows Bitcoin trading at $60.85, up 1.81% over 24 hours, but the long-term sustainability of mining revenues remains uncertain. For traders and investors, the company's ability to scale its AI services while maintaining profitability will be a key metric to watch in the coming quarters.
The Spanish acquisition signals IREN’s commitment to becoming a major player in AI cloud infrastructure, leveraging its power assets and GPU capacity to cater to hyperscalers and enterprise clients worldwide. The next major milestones for the company include its ongoing buildout of AI cloud capacity and potential new contract announcements, both of which could drive further revenue growth.
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