Iren, a neocloud corporations backed by Nvidia, said "it will be difficult for global computing resource supply to keep up with demand for artificial intelligence (AI)."
Daniel Roberts, Iren co-chief executive officer (CEO), stated accordingly in an interview with the Financial Times (FT) on the 7th (local time). Roberts said the ongoing AI data center construction boom is "fundamentally different" from past commodity and investment cycles, adding, "It's hard to imagine a situation where supply outpaces demand."
As the reason, CEO Roberts explained that "this industry is very unique in that every time a unit of new supply is added, it not only meets existing demand but actually creates additional demand several times larger." He added, "With the growth of AI agents and faster processing speeds, consumption of computing resources continues to increase."
According to Goldman Sachs, a global investment bank (IB), U.S. data center capacity is expected to double by the end of next year compared with 2024. By 2030, it is expected to more than triple to about 125 gigawatts (GW).
Iren was founded in Sydney, Australia, in 2018 by brothers Daniel and William Roberts. Starting as a bitcoin mining company called "Iris Energy," this corporations changed its name in 2024 and jumped into the AI cloud business.
It is one of the major neocloud corporations backed by Nvidia, along with Nevious, Nscale, and CoreWeave. As a corporations that rents out AI computing resources specialized in neocloud graphics processing unit (GPU) infrastructure, it is challenging the dominance of existing hyperscalers (large data center corporations) such as Microsoft (MS), Google, and Amazon in the AI cloud computing market
In May, Iren signed a five-year, $3.4 billion contract to lease computing capacity from Nvidia. Nvidia also secured the right to acquire up to $2.1 billion of Iren equity at $70 per share. Iren also signed a $9.7 billion computing supply contract with MS in Nov. last year.