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Can Nostrum Acquisition Accelerate IREN's Expansion in Europe?
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Key Takeaways
IREN acquired Nostrum, adding about 490MW of secured grid-connected power in Spain.
The deal expands IREN's presence in Europe, a key market for growing AI infrastructure demand.
IREN gains local development and engineering expertise to advance future AI cloud projects.
IREN Limited (IREN - Free Report) recently completed the acquisition of Nostrum Group, a Spain-based developer of grid-connected AI data centers. The acquisition marks IREN's entry into Europe and adds approximately 490 megawatts of secured, grid-connected power in Spain and increases IREN's total power portfolio to 5 gigawatts. A key positive here is IREN's access to power, which the company sees as a key requirement for AI infrastructure development, making the 490MW portfolio a key asset for IREN.
The acquisition expands IREN's ability to develop AI infrastructure in Europe, which the company describes as one of the largest and fastest-growing AI infrastructure markets. Demand for AI computing capacity will continue to increase as enterprises, cloud providers and governments invest in AI applications. This is where the Nostrum acquisition should help IREN to serve its customers who require infrastructure capacity across multiple regions.
Spain was selected because it offers several advantages for AI infrastructure development. According to IREN, the country provides access to abundant renewable energy, strong fiber connectivity and a supportive environment for large-scale data center projects. IREN sees Spain as one of the most attractive markets in Europe for AI infrastructure that can support future AI Cloud deployments because the region offers low-cost renewable power with connectivity to major European markets. These factors could help support future AI Cloud deployments.
The acquisition also brings an experienced local team of more than 50 employees across development, engineering, construction and operations. The team will strengthen IREN’s execution capabilities in Europe and help advance projects in the development pipeline. By adding secured power, development sites and local expertise, the Nostrum acquisition gives IREN a platform to expand its AI Cloud business in Europe.
IREN Stock Faces Stiff Competition
IREN faces intense competition from TeraWulf (WULF - Free Report) and Applied Digital (APLD - Free Report) in the AI infrastructure space.
In May 2026, TeraWulf acquired the Muskie Data Campus, a new AI and high-performance computing (HPC) development site in Eastern Kentucky. The campus is expected to support more than 1 GW of data center capacity. The Muskie Data Campus becomes TeraWulf’s second major digital infrastructure campus in Kentucky, in addition to its 480 MW Justified Data campus in Hancock County. The acquisition expands WULF’s development pipeline and increases its ability to support AI and HPC customers across different regions and power markets.
In May 2026, Applied Digital signed a 15-year lease agreement with a U.S.-based investment-grade hyperscale customer for Polaris Forge 3, APLD’s fourth AI data center campus. Polaris Forge 3 will provide 300 MW of IT capacity and will be supported by approximately 430 MW of utility power, and will be used to support large-scale AI training and inference workloads. The agreement increases APLD's total contracted lease revenues across four AI Factory campuses to approximately $31 billion.
IREN’s Price Performance, Valuation & Estimates
Shares of IREN have surged 56.6% in the year-to-date period against the Zacks Financial Miscellaneous Services industry’s decline of 6%.
IREN YTD Price Return Performance
Image Source: Zacks Investment Research
IREN shares are overvalued, as suggested by the Value Score of F. In terms of forward price/sales, IREN is trading at 8.22X compared with the industry’s 2.81X.
IREN Forward 12 Months (P/S) Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IREN’s bottom line in fiscal 2026 is pegged at a loss of 40 cents per share, revised downward over the past 30 days. IREN reported earnings of 4 cents per share in fiscal 2025.
View the Zacks #1 Rank List
Image: Bigstock
Can Nostrum Acquisition Accelerate IREN's Expansion in Europe?
Key Takeaways
IREN Limited (IREN - Free Report) recently completed the acquisition of Nostrum Group, a Spain-based developer of grid-connected AI data centers. The acquisition marks IREN's entry into Europe and adds approximately 490 megawatts of secured, grid-connected power in Spain and increases IREN's total power portfolio to 5 gigawatts. A key positive here is IREN's access to power, which the company sees as a key requirement for AI infrastructure development, making the 490MW portfolio a key asset for IREN.
The acquisition expands IREN's ability to develop AI infrastructure in Europe, which the company describes as one of the largest and fastest-growing AI infrastructure markets. Demand for AI computing capacity will continue to increase as enterprises, cloud providers and governments invest in AI applications. This is where the Nostrum acquisition should help IREN to serve its customers who require infrastructure capacity across multiple regions.
Spain was selected because it offers several advantages for AI infrastructure development. According to IREN, the country provides access to abundant renewable energy, strong fiber connectivity and a supportive environment for large-scale data center projects. IREN sees Spain as one of the most attractive markets in Europe for AI infrastructure that can support future AI Cloud deployments because the region offers low-cost renewable power with connectivity to major European markets. These factors could help support future AI Cloud deployments.
The acquisition also brings an experienced local team of more than 50 employees across development, engineering, construction and operations. The team will strengthen IREN’s execution capabilities in Europe and help advance projects in the development pipeline. By adding secured power, development sites and local expertise, the Nostrum acquisition gives IREN a platform to expand its AI Cloud business in Europe.
IREN Stock Faces Stiff Competition
IREN faces intense competition from TeraWulf (WULF - Free Report) and Applied Digital (APLD - Free Report) in the AI infrastructure space.
In May 2026, TeraWulf acquired the Muskie Data Campus, a new AI and high-performance computing (HPC) development site in Eastern Kentucky. The campus is expected to support more than 1 GW of data center capacity. The Muskie Data Campus becomes TeraWulf’s second major digital infrastructure campus in Kentucky, in addition to its 480 MW Justified Data campus in Hancock County. The acquisition expands WULF’s development pipeline and increases its ability to support AI and HPC customers across different regions and power markets.
In May 2026, Applied Digital signed a 15-year lease agreement with a U.S.-based investment-grade hyperscale customer for Polaris Forge 3, APLD’s fourth AI data center campus. Polaris Forge 3 will provide 300 MW of IT capacity and will be supported by approximately 430 MW of utility power, and will be used to support large-scale AI training and inference workloads. The agreement increases APLD's total contracted lease revenues across four AI Factory campuses to approximately $31 billion.
IREN’s Price Performance, Valuation & Estimates
Shares of IREN have surged 56.6% in the year-to-date period against the Zacks Financial Miscellaneous Services industry’s decline of 6%.
IREN YTD Price Return Performance
Image Source: Zacks Investment Research
IREN shares are overvalued, as suggested by the Value Score of F. In terms of forward price/sales, IREN is trading at 8.22X compared with the industry’s 2.81X.
IREN Forward 12 Months (P/S) Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IREN’s bottom line in fiscal 2026 is pegged at a loss of 40 cents per share, revised downward over the past 30 days. IREN reported earnings of 4 cents per share in fiscal 2025.
Image Source: Zacks Investment Research
Currently, IREN carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.