HIVE Digital Technologies Ltd. (TSE: HIVE), a company known for its renewable-powered digital infrastructure and Bitcoin mining operations, has announced a significant expansion in its artificial intelligence computing business.
Through its wholly owned subsidiary BUZZ High Performance Computing Inc., HIVE has entered into a five-year GPU cloud services contract with an unnamed investment-grade enterprise customer.
The agreement carries a total contract value of approximately $350 million and is projected to contribute about $70 million in annualized revenue.
This addition elevates BUZZ HPC’s overall annualized revenue figure to roughly $180 million.
Of that total, around $35 million is already being realized from existing operations, while the remaining $145 million in contracted annualized revenue is expected to ramp up and come online by the fourth quarter of 2026.
Under the terms of the deal, BUZZ HPC will provide a dedicated high-performance AI infrastructure cluster featuring 2,016 NVIDIA Blackwell Ultra GPUs.
These will be configured in NVIDIA GB300 NVL72 rack-scale systems, connected via NVIDIA Quantum-X800 InfiniBand networking, and backed by VAST Data’s high-performance storage solutions.
The setup follows NVIDIA’s reference architecture and is designed to handle large-scale AI training, inference tasks, and sophisticated enterprise workloads.
Deployment is scheduled for later this year at the Bell AI Fabric facility located in Merritt, British Columbia.
The site benefits from 100% renewable hydroelectric power and employs advanced closed-loop liquid cooling technology, which eliminates the need for continuous water use in cooling processes.
This aligns with BUZZ HPC’s emphasis on sustainable AI compute infrastructure.
Capital expenditures for the project, covering the computing cluster along with related hardware and service warranties, are estimated at approximately $185 million.
The customer will provide an upfront deposit equal to about 10% of the total contract value—roughly $35 million.
Combined with HIVE’s existing financing arrangements and additional equipment financing, this deposit is expected to help fund the rollout while supporting a favorable capital structure.
Importantly, HIVE will retain ownership of the NVIDIA infrastructure after the contract period, positioning it as a durable strategic asset with potential for ongoing cash flows beyond the initial five years.
Once the cluster is fully operational in the fourth quarter of 2026, HIVE anticipates its HPC and AI-related daily revenue will reach approximately $500,000.
Company executives highlighted the deal as a key milestone in advancing toward a $200 million annualized revenue target for the GPU cloud business by year-end 2026.
They noted the long-term revenue visibility, attractive economics, and strong internal rate of return enabled by a combination of convertible bond proceeds and debt financing for the GPU purchases.
This contract marks HIVE’s second major GPU cluster agreement in recent months, underscoring the growing demand for sovereign AI infrastructure in Canada and the company’s ability to secure high-quality, long-term customers.
By leveraging its expertise in renewable energy, data center construction, and high-performance computing, HIVE continues to diversify its dual-engine strategy that pairs traditional digital asset mining with expanding AI cloud services. The agreement further positions BUZZ HPC as a prominent Canadian provider of sustainable, enterprise-grade AI infrastructure capable of serving both domestic sovereign needs and international clients.