Hive Digital Powers Up AI Cloud with $30M Buzz HPC Deals

TLDR

• Buzz HPC lands $30M AI cloud contracts for Manitoba GPU expansion.
• Initial phase to deploy 504 liquid-cooled GPUs, $15M annual revenue.
• Full HPC rollout could hit $35M yearly with more GPU clusters.
• Tier-III colocation cuts costs vs self-funded high-performance builds.
• Hive targets 11,000 GPUs globally, scaling AI and HPC operations.

Hive Digital Technologies’ high-performance computing division, Buzz, has secured customer agreements worth up to $30 million. The contracts are set for two-year fixed terms and cover AI cloud capacity operated by the company. The deals will support Buzz’s GPU deployment at its Canada West location in Manitoba.

The initial phase will include 504 liquid-cooled GPUs built on Dell servers. This phase is expected to generate $15 million in annual recurring revenue. Hive plans to expand its GPU cluster further to increase total revenue.

Hive has been building its AI and HPC presence alongside its existing crypto data center operations. The company operates Tier-I facilities and is now using Tier-III locations for GPU cloud services. Buzz will partner with third-party data centers instead of constructing all facilities internally.

Buzz HPC Expansion Targets Canada West GPU Deployment

The first phase at Canada West is scheduled to go online during the quarter ending March 31, 2026. This deployment will handle high-performance AI and HPC workloads. Hive expects operational revenue from this phase to reach $15 million annually.

Executives project the full HPC segment could generate $35 million in annual revenue once all GPU clusters are deployed. Expansion will require additional capital expenditures for cooling, electrical systems, and working capital. Operating costs will also include power, maintenance, staffing, and network infrastructure.

Buzz HPC previously partnered with Bell Canada for Nvidia-based AI infrastructure. The collaboration includes a planned 5MW GPU deployment in a Manitoba data center. This strategy supports domestic compute capacity for Canadian workloads and international clients.

Hive Leverages Tier-III Strategy and Capital Efficiency

Hive is pursuing a selective Tier-III strategy using colocation and conversions instead of full self-funded builds. Tier-III facilities require more capital due to premium GPUs, advanced cooling, and power architecture. Constructing a comparable self-funded site could cost approximately $70 million.

Hive has already secured properties and buildings for its Tier-I operations while assessing Tier-III locations for HPC expansion. The approach aligns with its dual-engine model combining crypto hashrate services with high-performance computing. Executives expect capital discipline will help scale the AI cloud business effectively.

Hive continues to expand its global footprint, operating data centers across Canada, Sweden, Paraguay and the US. The company anticipates reaching 540MW of capacity by the end of 2026. Buzz aims to deploy over 11,000 GPUs across these facilities, scaling its high-performance compute platform.

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