RETRANSMISSION: HIVE's BUZZ Signs $30 Million in AI Cloud Contracts, Accelerating Global HPC Tier-III Data Center Expansion

Executive Summary

• HIVE Digital Technologies announced signed customer agreements worth ~US$30 million over two‑year fixed terms for its BUZZ Tier‑III HPC data‑center platform.
• The initial phase will deploy 504 liquid‑cooled Dell GPUs at the Canada West site, expected to be online by the end of Q1 2026 and generate roughly US$15 million in annual recurring revenue (ARR).
• Management projects total ARR for HIVE’s HPC segment to rise from ~US$20 million today to ~US$35 million after full deployment, with a longer‑term vision of ≈US$140 million ARR within the next year.

Key Details

• Contract Value: Approximately US$30 million total contract value (TCV) for two‑year fixed‑term agreements, subject to performance obligations and deployment milestones.
• Initial GPU Deployment: 504 liquid‑cooled Dell server GPUs at Canada West (Manitoba), slated to be operational by the quarter ending March 31 2026.
• Revenue Impact – Phase 1: Expected ARR of ~US$15 million once the initial 504‑GPU cluster is fully operational.
• Full‑Scale Revenue Outlook: Anticipated increase in HPC segment ARR from ~US$20 million (current) to ~US$35 million after complete rollout of BUZZ capacity.
• Long‑Term Vision: Targeting ≈US$140 million ARR for the AI‑GPU cloud business within the next 12 months, contingent on successful infrastructure deployment and market conditions.
• Capital Expenditure: Capital outlays will cover GPU acquisition, power and cooling infrastructure, and working‑capital needs; Tier‑III facilities are more capital‑intensive than Tier‑I (industry benchmark ≈US$70 million for a comparable self‑funded build).
• Financing Strategy: Utilising vendor financing arrangements for GPUs and strategic Tier‑III data‑center partnerships to reduce upfront cash outlay.
• Geographic Footprint: BUZZ will expand across Canada, Sweden, and Paraguay; the Canada West site is the first major deployment under the new agreements.
• Operational Partners: Dell (hardware) and Bell Canada (connectivity) identified as key partners for the GPU cluster.
• Recognition: BUZZ recently received a Bronze rating in SemiAnalysis’s ClusterMAX report for data‑center network performance.

Notable Quotes

“We are entering 2026 with strong momentum in our HPC and GPU cloud business… Our vision is to scale our HPC GPU AI cloud business toward approximately $140 million in ARR over the next year.” – Aydin Kilic, President & CEO, HIVE Digital Technologies

“Launching this cluster in Canada West marks a significant milestone… BUZZ is positioned to be a powerful growth catalyst as we accelerate into the global AI supercycle.” – Craig Tavares, President & COO, BUZZ HPC