IREN Limited (NASDAQ: IREN) saw its shares trade higher in premarket activity after the company revealed it has signed a transmission connection agreement for an 800MW data center campus in Bundey, located about 78 miles northeast of Adelaide in South Australia.
The developer described the Bundey project as its first publicly announced data center in Australia and noted that the campus ranks among the larger facilities disclosed so far in the Asia-Pacific region. IREN said it secured four 330kV feeder exits at the local utility substation, capacity the company expects will support up to 800MW without the need for network upgrades.
IREN indicated that it anticipates beginning energization of the site from 2028. The planned campus will include submarine fiber connectivity into major regional demand centers across the Asia-Pacific, specifically Singapore, Indonesia, South Korea, and Japan, according to the company.
The project is expected to have an employment footprint during construction and operation. IREN projected the development will create more than 500 jobs during the construction phase and deliver over 200 ongoing skilled positions once operational.
South Australia has set a grid objective of reaching 100% net renewable energy by 2027, a policy context IREN cited in explaining the location choice for the campus. Company leadership emphasized local advantages tied to clean energy availability and regional connectivity.
Daniel Roberts, Co-Founder and Co-CEO of IREN, said South Australia offers abundant clean energy, connectivity to serve the APAC region, and a State Government that understands the opportunity.
Peter Malinauskas, Premier of South Australia, said data centers represent a significant economic opportunity, bringing high-quality jobs, stronger renewable energy infrastructure, and new opportunities for regional communities.
Following the announcement, Canaccord analyst Joseph Vafi raised his price target on IREN to $79 from $70 and kept a Buy rating on the stock.
Market reaction included a premarket gain of 5.2% for IREN shares as investors absorbed the details of the transmission agreement and the scale of the proposed Bundey campus.
Background and context provided by company statements:
- The Bundey site is approximately 78 miles northeast of Adelaide.
- Four 330kV feeder exits at the utility substation are expected to enable up to 800MW without network upgrades.
- Energization is anticipated from 2028.
- Submarine fiber connectivity is planned into Singapore, Indonesia, South Korea, and Japan.
- Employment estimates include more than 500 construction jobs and over 200 ongoing skilled positions.