HIVE Digital Technologies Ltd (TSX-V:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) has announced plans to expand its artificial intelligence computing infrastructure in Canada, increasing its liquid-cooled data center capacity fourfold through its subsidiary BUZZ High Performance Computing.
The company said the expansion will grow its existing footprint from 4 megawatts (MW) in Manitoba to 16.6 MW of critical IT load across two provinces through a partnership with Bell Canada and its AI infrastructure initiative known as Bell Canada AI Fabric.
As part of the expansion, HIVE will add a new colocation facility in British Columbia with 5 MW of immediate capacity and the option to scale by an additional 7.6 MW in a second phase.
The first phase is expected to support the deployment of up to 2,000 next-generation AI-optimized graphics processing units (GPUs), while the optional second phase could accommodate roughly 3,000 more.
HIVE’s existing Manitoba facility currently hosts 504 AI-optimized GPUs using approximately 1 MW of capacity, with an additional 3 MW available to support about 1,500 more GPUs.
In total, the company said its Canadian operations now have a growth path to more than 6,000 GPUs through its data center partnerships and owned facilities.
The expansion is intended to support the company’s AI cloud strategy and rising demand for computing power used in artificial intelligence training and inference. HIVE said it aims to deploy 6,000 latest-generation GPUs for AI cloud services and is targeting 4,000 deployments with contracted revenue within the next six months.
According to the company, deposits made with its strategic data center partner in 2025 are sufficient to secure the expanded colocation capacity, meaning no additional capital expenditures are required for the infrastructure itself. Costs related to GPU procurement, installation and operations will continue as part of normal business activities.
"This expansion gives us committed liquid-cooled data center capacity across two provinces, and a clear path to over 6,000 next-generation AI-optimized GPUs in Canada,” HIVE CEO Aydin Kilic said.
He added that with data center infrastructure now secured, the demand for compute is strong.
“We are seeing economics where 3-year deals and 5-year deals for longer-term GPU contracts provide investors with comfort that there is a strong fundamental return on the investment and deployment of these GPU clusters,” Aydin said. “Investors should expect near-term updates on GPU procurement and cloud revenue contracts as we execute on this accelerated timeline."
Frank Holmes, HIVE executive chairman, said the company believes sovereign AI compute will “define the next decade of Canadian innovation, and HIVE intends to be at the center of it.”
“In addition to our exciting growth ramp, HIVE owns and operates other data centres in Canada, which prime for conversion for hyperscaler colocation, and even government or military contracts,” Holmes said.
“Notably, indications to management are that our 70 MW site in New Brunswick offers the scale of powered land for hyperscaler needs, and we believe the location of our 7.6 MW Toronto Airport site is very attractive to government or military applications."
HIVE said it is targeting $200 million in contracted annualized run-rate revenue from its high-performance computing operations by the end of its fiscal year on March 31, 2027.
The company is also continuing a broader shift toward AI and high-performance computing infrastructure in its international operations. HIVE operates several renewable-powered data centers in Sweden, including a facility in Boden that is being upgraded to a Tier-III HPC data center capable of supporting enterprise-grade GPU clusters.
The transition comes as the company gradually reduces some of its traditional ASIC-based cryptocurrency mining activities in Sweden, citing regulatory and tax-related challenges affecting those operations.
Separately, HIVE announced the issuance of 2,849,400 restricted share units to employees, executives, directors and consultants under its compensation plan. The units will vest over a one-year period and are intended to align employee incentives with the company’s long-term growth strategy as it expands its AI computing business.
Shares of HIVE were up 3.3% in the US and 4.1% in Canada on Monday morning.