A new data center provider is entering the market with a focus on power-dense computer applications, including AI and Bitcoin mining. This provider, Iris Energy (IREN), has built five data centers in remote locations with cheap and renewable power. These data centers, originally designed for Bitcoin mining, can easily be converted to serve the growing demand for AI applications. IREN's CEO, Dan Roberts, explains that the company's data centers have high-power processing capabilities, designed for AI and Bitcoin mining, and are located in remote areas to reduce infrastructure costs. The company has secured 200 MW of power with plans to expand further. It has also secured its first customer, Poolside AI, a startup dedicated to using AI for code development.

This move by IREN aligns with the emerging trend of dedicated "AI factories" in the data center industry, as highlighted by Nvidia CEO Jensen Huang. Other players, including Meta and Core Scientific, have also ventured into the AI space to capitalize on growing demands. Analysts view IREN's pivot to AI as a smart move that leverages its experience and infrastructure capabilities. While funding operations with cryptocurrencies like Bitcoin makes sense, diversifying into AI workloads provides a hedge against potential drops in cryptocurrency value. The concept of IREN's data centers, with their cost-effectiveness and slight latency differences, may appeal to certain customers, although major players may prefer larger and more secure facilities.