HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) announced that its BUZZ High Performance Computing unit has signed customer agreements representing about $30 million in total contract value over two-year fixed terms, marking what the company described as progress in its artificial intelligence cloud strategy.
BUZZ, the company’s Canadian Tier-III high-performance computing data center platform, is expanding as HIVE’s AI-focused business alongside its existing Tier-I hashrate services operations. The company said the new contracts support the initial phase of BUZZ’s AI-optimized GPU deployment at its Canada West site in Manitoba.
Compute capacity from the first phase is expected to come online in the quarter ending March 31, 2026. The deployment will include 504 liquid-cooled Dell server-based GPUs designed for AI and HPC workloads.
Based on executed contracts, current pricing and deployment schedules, management expects the initial phase to generate approximately $15 million in annual recurring revenue for BUZZ’s cloud business once fully operational.
The company said that, upon full deployment, it expects total annualized revenue attributable to HIVE’s HPC segment to increase to roughly $35 million from about $20 million currently.
To support the expansion, HIVE expects to incur capital expenditures related to GPU purchases, electrical and cooling infrastructure, and working capital. Anticipated operating expenses include power, hosting, maintenance, staffing and network costs.
BUZZ said it continues to expand capacity at the Canada West site in line with executed customer agreements.
"We are entering 2026 with strong momentum in our HPC and GPU cloud business. HIVE has built a track record as one of the longest-standing publicly traded crypto Tier-I data center operators, performing through multiple market cycles while protecting cash flow and balance sheet strength,” HIVE executive chairman Frank Holmes said.
“Now, with BUZZ, we are leveraging that foundation to build a high-growth AI cloud platform spanning Canada, Sweden, and Paraguay.”
Aydin Kilic, HIVE CEO, said the company is targeting approximately $140 million in annual recurring revenue over the next year for its HPC GPU AI cloud business, subject to market conditions and successful infrastructure deployment.
“This is just the beginning,” Kilic said. “Demand for long-term access to high-performance, power-efficient AI compute continues to expand globally, and we are excited to further scale our GPU cloud business throughout 2026."
Shares of HIVE added 4.1% in Toronto and 4.2% in New York.