The AI infrastructure race is no longer just about chipmakers. Companies with access to massive amounts of electricity, land, and data center capacity are becoming some of the biggest beneficiaries of the AI boom.
One company now attracting attention is IREN (NASDAQ: IREN), after reports suggested it is among the leading contenders for a A$22 billion Australian AI cloud infrastructure project backed by AI startup Anthropic.
While nothing has been officially announced yet, even being considered for a project of this scale has put IREN firmly on investors’ watchlists.
Why This Matters
Anthropic is reportedly looking for around 1.4 gigawatts of AI cloud capacity in Australia.
To put that into perspective, this is one of the largest AI infrastructure opportunities currently being discussed globally.
If IREN were to secure a meaningful share of this contract, it would significantly strengthen its position as an AI infrastructure provider rather than just a Bitcoin mining company.
For investors, this changes the conversation around the stock.
IREN’s Transformation
Many investors still associate IREN with Bitcoin mining.
However, over the past few years, the company has been steadily repositioning itself toward AI and high-performance computing.
Its biggest advantage is not software or AI models.
It is infrastructure.
IREN controls a large portfolio of powered land and grid connections, assets that are becoming increasingly valuable as AI companies compete for access to electricity.
The company says it has access to nearly 5 gigawatts of power capacity, giving it room to expand AI data centers over the coming years.
The Existing AI Partnerships
The Anthropic opportunity is not the only reason investors are paying attention.
IREN has already established relationships with major technology companies including:
- Microsoft
- NVIDIA
These partnerships have helped validate its strategy of expanding into AI cloud infrastructure.
Winning additional large AI customers would further strengthen that narrative.
Why The Bundey Campus Is Important
One of the key assets drawing attention is IREN’s Bundey campus in Australia.
The site already has secured power connections, making it attractive for rapid AI data center deployment.
Power availability has become one of the biggest bottlenecks in AI infrastructure.
Many technology companies have enough capital to build data centers but struggle to secure sufficient electricity.
That makes locations like Bundey strategically valuable.
Leadership Built For AI Expansion
IREN has also strengthened its management team with executives who have experience building cloud infrastructure at some of the world’s biggest technology companies.
Recent leadership additions include professionals with backgrounds at:
- Oracle Cloud Infrastructure
- CyrusOne
Their experience could become particularly valuable if IREN needs to rapidly build large AI facilities for enterprise customers.
The Bull Case
Supporters believe several factors could drive long-term growth.
Growing AI demand
Demand for AI computing continues to grow rapidly as companies build larger models and deploy AI applications.
Large power portfolio
Access to nearly 5 GW of power gives IREN an important competitive advantage.
Diversification
Moving beyond Bitcoin mining reduces dependence on cryptocurrency cycles.
Potential mega contracts
Landing a customer like Anthropic could dramatically increase long-term recurring revenue.
Some optimistic forecasts cited by analysts project:
- Revenue approaching US$8.7 billion by 2029
- Earnings around US$505 million
- Fair value estimates suggesting meaningful upside from current prices
These forecasts remain projections rather than guarantees.
The Risks Investors Should Remember
Despite the excitement, there are several important risks.
Heavy capital spending
Building AI data centers requires billions of dollars in investment.
Execution risk
Scaling infrastructure this quickly is operationally challenging.
Potential shareholder dilution
Future expansion may require raising additional capital.
Bitcoin exposure
Although AI is becoming a larger part of the business, Bitcoin mining still contributes to IREN’s operations.
Supply chain challenges
Delays in securing GPUs, networking equipment or electrical infrastructure could slow growth.
Regulatory uncertainty
Energy policy and permitting remain important considerations for large data center projects.
Why Opinions Differ
Not every analyst is equally optimistic.
Some more conservative estimates project:
- Around US$2.6 billion in revenue by 2029
- Roughly US$301 million in earnings
These lower estimates reflect concerns that execution challenges, infrastructure bottlenecks and regulatory hurdles could limit growth.
The difference between bullish and bearish projections highlights just how uncertain the long-term outlook remains.
The Bigger Picture
The AI boom is creating a new category of infrastructure companies.
While firms like NVIDIA supply the chips, companies like IREN aim to provide the physical infrastructure needed to run AI workloads at scale.
If Anthropic ultimately awards a major contract to IREN, it could accelerate the company’s transition from a cryptocurrency-focused business into a significant AI infrastructure provider.
However, until any agreement is officially confirmed, investors should view the current reports as a potential catalyst rather than a certainty.
Final Thoughts
IREN sits at an interesting crossroads.
Its access to power, expanding AI partnerships and infrastructure assets position it well to benefit from the growing demand for AI computing.
At the same time, the company still faces meaningful execution and financing challenges that come with building large-scale AI infrastructure.
For investors, the key question is whether IREN can successfully convert its infrastructure advantage into long-term, profitable AI cloud revenue. If it can, the company’s transformation may only be getting started.