SemiAnalysis flagged reliability issues at IREN's BC sites. How serious is this, and can it be fixed? Also How detrimental is this to IREN as a whole - and especially if it’s something they can’t fix?
IREN dropped 6%+ to around $39 today after SemiAnalysis posted on X about reliability problems at the Prince George and Mackenzie, BC data centers. They cited multi-day power outages, network upgrades, storage failures, air quality controls causing link flaps, and "XIDs everywhere," and said customers rank it among the worst sites in the industry.
I'm trying to understand how much this matters and would love input from anyone with data center or neocloud experience:
Fixable or structural? Are these operational problems (better maintenance, redundancy, staffing) or tied to the sites themselves, like power infrastructure, cooling, and climate?
Customer risk: How sticky are GPU cloud customers? If reliability is bad, how quickly do they leave or renegotiate contracts?
Revenue exposure: How much of IREN's revenue and growth depends on these two sites versus newer builds?
Has IREN responded? I haven't seen a statement addressing this. Has anyone?
Credibility: SemiAnalysis is well respected in this space, but this is based on customer anecdotes. Is there independent evidence either way?
Not looking for price predictions, just trying to figure out whether this is a fixable operational issue or a real threat to the business model. Thanks!