IREN Surges 27% on Nvidia AI Pact and 5GW European Expansion

IREN Limited (NASDAQ: IREN) shares surged 27 percent after the AI cloud provider announced a strategic partnership with NVIDIA and a separate deal to acquire Spain’s Nostrum Group, expanding its total power portfolio to 5 gigawatts and marking its entry into the European market. The dual announcements solidify IREN’s rapid transition from a Bitcoin mining operator into a vertically integrated AI cloud provider, positioning it to compete with established players like CoreWeave.

“AI factories are becoming foundational infrastructure for the global economy,” said Jensen Huang, founder and CEO of NVIDIA. “Deploying these systems at scale requires deep integration across the full stack — compute, networking, software, power and operations. IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure globally.”

Under the partnership, NVIDIA receives a five-year right to purchase up to 30 million IREN shares at $70 per share, representing a potential investment of $2.1 billion. Separately, the acquisition of data center developer Nostrum Group adds approximately 490 megawatts of grid-connected power in Spain. This increases IREN's total power capacity to 5GW, providing a critical foothold to service growing AI demand in Europe.

The moves are the latest in a series of strategic pivots for IREN, which aims to reach $3.4 billion in annualized revenue by the end of 2026. The company’s transformation gained momentum with a $625 million all-stock acquisition of Mirantis and a major contract with Microsoft, backed by $3.6 billion in GPU financing. These deals are shifting the company’s revenue base away from Bitcoin mining, which accounted for 91 percent of its $184.7 million revenue in the second quarter.

The NVIDIA Alliance

The collaboration with NVIDIA will focus on deploying NVIDIA’s DSX AI factory architecture, with IREN’s 2-gigawatt Sweetwater campus in Texas expected to serve as a flagship site. This partnership combines NVIDIA’s leadership in AI systems with IREN’s operational expertise in securing power and building out large-scale data centers, aiming to expand access to high-performance computing for both AI-native startups and enterprise customers.

European Foothold

IREN's acquisition of Nostrum Group provides an immediate and strategic entry into the European market. Spain is considered an attractive location for AI data center development due to its supportive AI policies, abundant low-cost renewable energy, and robust connectivity. The deal also brings Nostrum’s experienced local team, strengthening IREN’s global execution capabilities.

With shares up more than 830% over the past year, investors have rewarded IREN's aggressive AI strategy. The focus now shifts from announcements to execution, as the market watches to see if the company can successfully integrate its acquisitions and translate its massive power and compute portfolio into the targeted $3.4 billion revenue run-rate.

This article is for informational purposes only and does not constitute investment advice.