iris energy -- hpc capacity overstatement
published: February 22, 2026 •
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case overview
a securities class action alleges iris energy overstated its data center capabilities for high-performance computing and ai workloads, particularly at its childress county, texas facility.
| Case | Williams-Israel v. Iris Energy Limited, No. 24-cv-07046 |
| Court | U.S. District Court, Eastern District of New York |
| Filed | October 7, 2024 |
| Class Period | June 20, 2023 — July 11, 2024 |
| Stock Drop | -15% on culper report |
| Status | Active |
allegations
- overstated hpc prospects: iris energy promoted its childress county facility as “hpc-ready” when it lacked necessary infrastructure
- infrastructure deficiencies: the facility lacked backup power supplies, proper cooling systems for hpc, and had only a single power transmission line
- cost disparity: iris energy spent less than $1 million per megawatt to build its data centers — drastically below the $10-20 million/mw industry standard for hpc-ready facilities
- climate unsuitability: the west texas location was unsuitable for continuous high-performance computing in extreme temperatures
catalyst
on july 11, 2024, culper research published “iris energy ltd (iren): a prius at the grand prix,” accusing the company of being a bitcoin miner that misrepresented its capabilities for hpc/ai workloads. stock fell more than 15% to close at $11.20.
significance
this case exemplifies the “ai washing” pattern in the data center sector: a bitcoin mining company pivots its narrative to ai/hpc to capture higher valuations, but the underlying infrastructure doesn’t support the claim.
sources
last updated: february 22, 2026