HIVE Digital Technologies has secured approximately 30 million dollars in customer agreements tied to its BUZZ High Performance Computing platform, marking an early commercial milestone in the company’s expansion into AI focused infrastructure in Canada.
The contracts, structured over fixed two year terms and linked to deployment milestones, support the first phase of a 504 GPU rollout at HIVE’s Canada West facility in Manitoba. The cluster relies on liquid cooled Dell servers engineered for artificial intelligence training, inference, and high performance computing workloads. HIVE expects the initial compute capacity to come online by the end of March 2026.
Management estimates that once the first phase reaches full operation, the cluster could generate roughly 15 million dollars in annual recurring revenue, based on current contract terms and pricing. At present, HIVE’s HPC segment contributes about 20 million dollars in annualized revenue. With the Manitoba deployment fully commissioned, the company projects that figure could rise to around 35 million dollars, subject to utilization levels and operating costs.
Historically known for Tier I cryptocurrency data centers, HIVE now describes its approach as a dual engine model. It continues its digital asset infrastructure business while scaling Tier III facilities built for dense GPU clusters. Tier III environments demand greater capital investment because they need advanced cooling systems and multiple power sources and high-quality equipment. The business model of these companies focuses on securing AI cloud contracts which provide revenue streams that remain stable throughout extended periods.
The facility uses liquid cooling technology to control heat generated by its high density AI systems. Bell Canada provides connectivity support, while vendor financing arrangements aim to limit upfront capital strain.
The broader context also matters. Governments and enterprises require regional hosting options because they need sovereign AI compute capacity to meet their data residency and compliance needs. Canada’s focus on domestic AI infrastructure development has increased demand for local GPU clusters which private companies and research institutions can use.
HIVE has set a target to achieve 140 million dollars in annual recurring revenue through its AI cloud business expansion plan which depends on its product launch success and ongoing market needs. The company has achieved a major milestone through its 30 million dollar contract acquisition, which enables it to advance into the developing sovereign AI infrastructure market in Canada.
