HIVE Digital Technologies is making substantial strides in the artificial intelligence cloud sector through its BUZZ High Performance Computing division. The company recently announced the signing of customer contracts valued at roughly $30 million over two years, underscoring its strategic pivot towards AI and high-performance computing. This move leverages HIVE's established expertise as a prominent data center operator, expanding its service offerings beyond its conventional hashrate operations into the rapidly growing AI market. The expansion is centered around its Canadian Tier-III data center, which will see a significant upgrade to support advanced AI and HPC workloads.
This strategic expansion is poised to significantly boost HIVE's revenue streams and market position. With the initial phase of AI-optimized GPU deployment set to go live by March 31, 2026, the company anticipates a substantial increase in its annual recurring revenue. The long-term vision includes a goal of $140 million in annual recurring revenue for its HPC GPU AI cloud business, subject to market dynamics and successful infrastructure development. This aggressive growth target reflects the increasing global demand for high-performance, energy-efficient AI compute solutions, positioning HIVE as a key player in this evolving technological landscape.
Expanding AI Infrastructure and Revenue Growth
HIVE Digital Technologies' BUZZ unit has successfully secured approximately $30 million in AI cloud agreements, reinforcing the company's strategic commitment to advancing its artificial intelligence initiatives. These contracts, spanning a two-year period, signify a pivotal moment for HIVE as it expands its Canadian Tier-III high-performance computing data center. The deployment involves integrating 504 state-of-the-art liquid-cooled Dell server-based GPUs, specifically engineered to manage intensive AI and HPC tasks. This infrastructure enhancement is designed to meet the growing demand for sophisticated computing power, propelling HIVE into a more prominent role within the AI cloud market.
The initial phase of this deployment, scheduled to become operational by March 31, 2026, is projected to generate an estimated $15 million in annual recurring revenue for BUZZ’s cloud business. Upon the full realization of the expansion, HIVE anticipates that its total annualized revenue from the HPC segment will surge to approximately $35 million, a substantial increase from its current $20 million. This growth is underpinned by the company's plans to incur capital expenditures for GPU acquisitions and the necessary electrical and cooling infrastructure, along with managing associated operational costs like power, hosting, and maintenance. HIVE's Executive Chairman, Frank Holmes, emphasized the company's strong momentum and long-standing track record, highlighting its ability to leverage its data center foundation to build a high-growth AI cloud platform across Canada, Sweden, and Paraguay.
Strategic Vision for AI Cloud Dominance
HIVE Digital Technologies is strategically positioning its BUZZ High Performance Computing unit to become a leader in the AI cloud sector, driven by recent customer agreements totaling around $30 million. These agreements are a cornerstone of HIVE's broader AI cloud strategy, which involves the significant expansion of its Canadian Tier-III data center. By deploying 504 liquid-cooled Dell server-based GPUs, specifically optimized for artificial intelligence and high-performance computing workloads, HIVE is enhancing its capability to deliver cutting-edge solutions to a diverse client base. This move demonstrates a clear focus on diversifying revenue streams beyond its traditional hashrate services, capitalizing on the burgeoning demand for AI-driven computational power.
The company’s management foresees the initial phase of compute capacity deployment generating an impressive $15 million in annual recurring revenue for BUZZ once fully operational. Moreover, the ambitious target set by HIVE CEO Aydin Kilic aims for approximately $140 million in annual recurring revenue for the HPC GPU AI cloud business over the next year. This projection, while subject to market conditions and successful infrastructure deployment, reflects HIVE's confidence in its ability to scale operations across its global footprint, including facilities in Canada, Sweden, and Paraguay. Kilic underscored the continually expanding global demand for high-performance, power-efficient AI compute, expressing enthusiasm for further scaling the GPU cloud business throughout 2026, solidifying HIVE's long-term vision for AI cloud dominance.
