Iris Energy Expands High-Performance Computing Strategy

Key Points:

• Iris Energy said that it is resurrecting its strategy of hosting high-performance computers alongside Bitcoin miners.
• By early 2024, the company intends to grow its data center capacity to 9.1 EH/s.

According to a press statement issued on Tuesday, Iris Energy Limited revealed its growth goal to 9.1 EH/s, the revival of its high-performance computing (HPC) data center strategy, and a limited recourse equipment finance update.

Iris Energy announced that construction of the remaining 80MW of data centers for Phase 1 (the first 100MW) of its 600MW Childress facility had begun. The next four 20MW data centers are estimated to enhance the Company’s potential operational capacity by 63% (from 5.6 EH/s to 9.1 EH/s1) and are scheduled to be completed in early 2042.

With $64 million in cash, no debt, operational cashflows from its current 5.6 EH/s, and extra flexibility from its committed equity facility, the firm is well funded.

Applied Digital Company, Crusoe Energy, and Hut 8 Mining are among the miners that have lately expanded into other sorts of computing. AI data center space demand is expected to reach $76 billion by 2028, with huge language models like OpenAI’s ChatGPT becoming more popular.

Miners’ access to inexpensive electricity and data center infrastructure may make it seem simple for them to transition to AI and cloud computing. Yet, in terms of operational quality, uptime, and customer service, the needs of high-performance computing businesses vary dramatically from those of mining.

Iris Energy also said that their HPC data center plan is now a parallel emphasis while preserving flexibility on the miner acquisition schedule, which is dependent on financing and market circumstances. In 2020, the firm and Dell Technologies inked a strategic agreement of understanding to test and develop possible data center solutions for energy-intensive computing workloads.

This might include employing Iris Energy’s four existing functioning sites as well as its geographically diverse portfolio of other worldwide locations that are now under construction.

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Harold

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