HIVE Digital Technologies Ltd. announced significant progress today. Its BUZZ High Performance Computing arm secured new deals. These customer agreements total approximately $30 million. The contracts have two-year fixed terms. This news marks a major step forward for HIVE’s AI cloud strategy. It is a key development in the current digital infrastructure landscape.
BUZZ Secures Major AI Cloud Contracts
BUZZ is HIVE’s Canadian Tier-III data center platform. It specializes in high-performance computing. The company signed contracts worth about $30 million. These agreements support an initial GPU deployment. The deployment is happening at its Canada West site. This location is in Manitoba. The compute capacity should be online by March 31, 2026. It is an important contract for BUZZ. Indeed, this is a substantial financial commitment.
Driving HPC Revenue Growth
Management expects this first phase to generate revenue. It should bring in about $15 million annually. This is for BUZZ’s cloud business. Upon full deployment, HIVE anticipates significant growth. Its HPC annualized revenue will rise. It is expected to increase from about $20 million. The new target is roughly $35 million. Furthermore, BUZZ targets long-term growth. The company aims for $140 million in ARR. This growth depends on deployment milestones. It also hinges on capital expenditures and operating costs.
Expanding Tier-III Data Center Capacity
The new contracts anchor the initial phase of expansion. BUZZ is deploying AI-optimized GPUs. The build-out uses 504 liquid-cooled GPUs. These are built on Dell servers. They are designed for AI and HPC workloads. Tier-III data centers require significant investment. This includes premium hardware and advanced cooling. It also needs robust power architecture. This contrasts with simpler Tier-I facilities. BUZZ is leveraging its four years of GPU infrastructure experience. It is accelerating its expansion. This complements HIVE’s existing services.
The AI Boom Fuels Demand
Demand for AI compute power is rapidly growing. This expansion directly addresses that need. The AI cloud infrastructure market is booming. Major tech companies are investing billions. Hyperscalers plan huge capital expenditures. They foresee massive demand for AI workloads. GPUs are crucial for these tasks. This trend drives companies like HIVE. They provide essential infrastructure for AI. Indeed, HIVE is positioned to meet this demand.
HIVE’s Strategic Vision
HIVE Digital Technologies is a diversified company. It focuses on renewable-powered infrastructure. The company mines Bitcoin and offers AI/HPC services. Its headquarters are now in San Antonio, Texas. This move occurred in late 2024. The company believes the U.S. offers a favorable business environment. HIVE operates data centers globally. This includes locations in Canada, Sweden, and Paraguay. President and CEO Aydin Kilic sees great potential. He believes BUZZ can scale its AI cloud business. Executive Chairman Frank Holmes notes strong momentum. He emphasizes building decades of digital infrastructure.
Operational Details and Future Outlook
These expansions require capital expenditures. Costs include GPU acquisition and infrastructure upgrades. Operating expenses will cover power, hosting, and staffing. BUZZ continues to expand capacity at its Canada West site. The company is aligning with customer agreements. The current news indicates strong contracted demand. HIVE aims to leverage this momentum. Its focus is on building a high-growth AI cloud platform. The future looks promising for HIVE’s AI ventures.
Conclusion
The $30 million in new contracts is a significant win. It highlights the strong market demand for AI compute. BUZZ’s expansion into Tier-III HPC capacity is strategic. This development is current news for the tech sector. It solidifies HIVE’s role in next-generation digital infrastructure. The company’s forward-looking plans suggest continued growth. This investment positions HIVE for future success in the AI revolution.
