IREN closes Nostrum acquisition, adding 490 MW of secured

IREN has completed its acquisition of Spanish data center developer Nostrum Group, formally entering Europe with roughly 490 megawatts of secured, grid-connected power in Spain. The company is positioning the deal as infrastructure for its AI cloud push as Bitcoin mining revenue fell quarter-over-quarter in its March 31 results.

Key Takeaways

IREN completed the acquisition of Spain-based data center developer Nostrum Group, establishing its first operating foothold in Europe.
The transaction brings about 490 MW of secured, grid-connected Spanish power plus a development pipeline and more than 50 staff across engineering, construction, development, and operations.
Global power capacity was sized at roughly 5 GW after the deal, with Spain representing about 10% of the portfolio.
In the quarter ended March 31, AI cloud services revenue rose to $33.6 million while Bitcoin mining revenue declined to $111.2 million.

IREN Closes Nostrum Deal, Bringing 490 MW and a Spain Build Team

IREN said it has completed its acquisition of Nostrum Group, a Spanish data center developer, a move that marks the company’s entry into Europe. The immediate operational delta is not just a new geography, but a packaged buildout capability: about 490 megawatts of secured, grid-connected power in Spain, a development pipeline, and more than 50 employees spanning engineering, construction, development, and operations.

For traders, the structure matters. This is a shortcut to execution capacity in-market, not a slow, incremental expansion off existing sites. By buying Nostrum, IREN effectively adds a local team that can move permits, construction, and operations forward while it tries to scale AI cloud services alongside its legacy mining footprint.

IREN co-founder and co-CEO Daniel Roberts framed Spain as a strategic base for AI infrastructure demand, pointing to renewable power and fiber connectivity. “Europe is one of the largest and fastest-growing markets for AI infrastructure, and Spain is among its most compelling entry points,” Roberts said.

Revenue Mix Check: AI Cloud Growing While Mining Revenue Slips

IREN’s latest quarterly numbers show why the company is leaning into contract-style compute revenue. For the quarter ended March 31, IREN reported $111.2 million in Bitcoin mining revenue versus $33.6 million from AI cloud services.

The direction of travel is the key signal. AI cloud revenue increased to $33.6 million from $17.3 million in the prior quarter, while mining revenue fell to $111.2 million from $167.4 million over the same period.

IREN attributed the mining revenue decline partly to lower average BTC prices and the decommissioning of mining hardware. That combination is a reminder that mining revenue can compress quickly when price and fleet decisions move against you, which is exactly the volatility profile miners cite when pitching AI cloud as a steadier alternative.

Spain’s Role in IREN’s 5 GW Power Portfolio

IREN said the Nostrum deal expands its global power portfolio to about 5 gigawatts, with Spanish capacity representing about 10% of the total. The company’s emphasis on “secured, grid-connected” megawatts is doing work here. In practice, MW is the hard ceiling on how much compute can be run, whether it is ASICs for mining or GPUs for AI, and grid-connected capacity is the gating item that tends to bottleneck timelines.

Spain, at roughly 490 MW, is being positioned as a meaningful wedge inside that broader 5 GW strategy rather than a token pilot. The market will still need proof that the pipeline can be energized and built on schedule, but the sizing suggests IREN wants Europe to be a real pillar of its AI infrastructure footprint.

Milestones Traders Can Track From Here

The first missing piece is deal economics. IREN has not disclosed the Nostrum acquisition consideration or structure in the information provided, leaving open questions on purchase price, cash versus equity, and any earn-outs that could matter for dilution and balance sheet flexibility.

Next is the timeline risk. Traders will want dated guidance for energizing and building out the ~490 MW Spanish pipeline, plus any capex framework tied to that rollout.

On the monetization side, IREN reported having about 150,000 GPUs installed or on order as of March 31. Bernstein analysts estimated that footprint could support a $3.7 billion annual revenue run rate, but that figure is an external estimate rather than company guidance, and the assumptions and timing are not detailed.

The cleanest confirmation signal will be the next quarterly revenue split. The real check is whether AI cloud continues to grow from $33.6 million while mining stays below the prior quarter’s $167.4 million level.

The Trade Is About Execution Speed, Not MW Headlines

I’m treating the Nostrum acquisition as an execution bet disguised as a capacity headline. Secured, grid-connected MW and a local build team are the inputs, but the market will price the outputs: how fast that Spanish pipeline turns into energized capacity and contracted AI cloud revenue.

The threshold that matters is whether GPU scale converts into deployed, utilized infrastructure with visible contract wins. If that conversion shows up in the next revenue mix prints, the setup starts to look structural rather than narrative-driven, and Spain becomes more than a one-off expansion line item.

IREN closes Nostrum acquisition, adding 490 MW of secured Spanish power