SemiAnalysis raises concerns about IREN's Canadian data center portfolio; IREN stock drops 4%, Core Scientific down 2%.

IREN Limited (NASDAQ: IREN) fell 4% in morning trading after critical reports on its Canadian data centers, with stock price at $36.98. The reports question uptime at IREN's British Columbia sites, which carry capacity tied to the company's near-term targets.

The pressure is spreading across the data center sector. TeraWulf (NASDAQ: WULF) dropped 4% to $13.76, reflecting broader concerns among artificial intelligence data center operators. Core Scientific (NASDAQ: CORZ) slipped 2% to $15.65, a notably softer decline for a company running a similar colocation business.

Each of IREN, TeraWulf, and Core Scientific has shifted toward renting computing capacity to artificial intelligence customers, making doubts about one operator's reliability spill across the group. The Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR) fell 1% to $27.35, while the broader market — the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) at $776.12, down 0.1% — confirms this is a targeted selloff concentrated in operators facing the hardest questions about reliability.

For IREN, the stakes are particularly high. Its owner-operator model ties site uptime directly to revenue, making the unanswered British Columbia outage claims especially damaging ahead of December quarter targets.