IREN: The Undervalued Power Play in the AI Infrastructure Boom

The global AI revolution is accelerating at an unprecedented pace, but its success hinges on a critical, often overlooked bottleneck: power. As research shows, the U.S. grid faces a looming 47 gigawatt shortfall by 2025. This shortfall, driven by AI infrastructure's insatiable appetite for electricity, is reshaping the energy landscape and creating urgent opportunities for companies positioned to bridge the gap. Among them, IREN stands out as a strategic investment candidate, leveraging renewable energy, cutting-edge data center design, and forward-looking infrastructure planning to capitalize on the AI boom.

The AI Power Crisis: A Defining Challenge for the Grid

The surge in AI-driven power demand is staggering. According to data, U.S. data centers alone consumed 183 terawatt-hours (TWh) of electricity in 2024, accounting for over 4% of the nation's total electricity use. By 2028, projections suggest this figure is projected to rise to 12% of U.S. electricity consumption, with AI-optimized hyperscale facilities consuming energy equivalent to 100,000 households annually. The Deloitte 2025 AI Infrastructure Survey underscores the gravity of the situation, with 72% of respondents identifying power and grid capacity as "extremely challenging."

Compounding the issue is the grid's structural fragility. The U.S. Department of Energy warns that planned retirements of coal and natural gas plants-totaling 104 gigawatts by 2030-far outpace the addition of new reliable generation capacity (22 gigawatts). This imbalance risks a 100-fold increase in annual hours of lost load, with some regions facing up to 43% hourly load loss during peak demand or extreme weather events. Without urgent intervention, the grid's ability to support AI's exponential growth is in jeopardy.

IREN's Strategic Position: Renewable Power Meets AI Demand

IREN is uniquely positioned to address this crisis. The company has built a vertically integrated model that combines renewable energy generation with AI-ready data centers, ensuring both sustainability and scalability. As of fiscal year 2025, IREN operates 810 megawatts (MW) of data center capacity and has secured 2,910 MW of grid-connected power across its facilities. This commitment to 100% renewable energy is a critical differentiator in an industry grappling with carbon intensity and grid reliability.

IREN's expansion into AI infrastructure is equally compelling. The company has increased its AI Cloud capacity to 1,900 NVIDIA GPUs by year-end 2025, with plans to deploy over 10,000 GPUs by December 2025. These GPUs, essential for training large-scale AI models, are housed in liquid-cooled data centers like the Prince George facility, which can support over 4,500 GB300 NVL72 GPUs. Such projects are designed to meet the anticipated surge in global AI demand, which is expected to grow significantly by 2030.

A Forward-Looking Strategy for Grid Resilience

IREN's approach extends beyond infrastructure. The company's leadership, including Co-CEO Daniel Roberts, has emphasized proactive power procurement and infrastructure development to stay ahead of demand. This strategy aligns with broader industry recommendations, such as hybridizing solar and wind with battery storage and delaying the retirement of older thermal plants. According to industry analysis, by securing power and grid capacity early, IREN mitigates the risks of grid instability and positions itself as a critical partner for AI developers and enterprises.

Moreover, IREN's focus on renewable energy addresses a key regulatory and market trend. As governments and corporations prioritize decarbonization, AI infrastructure providers with low-carbon footprints will gain a competitive edge. IREN's 100% renewable-powered data centers not only reduce environmental impact but also align with corporate sustainability goals, making them attractive to a growing segment of clients.

Investment Implications: Undervalued Potential in a High-Stakes Market

The 47 gigawatt AI power shortfall represents both a crisis and an opportunity. Companies that can deliver reliable, sustainable power to AI infrastructure will dominate the next phase of the AI economy. IREN's combination of renewable energy, advanced data center design, and strategic foresight positions it as a leader in this space. Despite its strong fundamentals, the company remains undervalued relative to its peers, offering investors a compelling entry point.

As the U.S. grid races to modernize and meet AI's demands, IREN's ability to scale its infrastructure while maintaining environmental responsibility makes it a standout play. For investors seeking exposure to the AI revolution's energy underpinnings, IREN's strategic positioning and execution capabilities warrant serious consideration.