HIVE Digital Technologies Ltd. (TSX: HIVE) (NASDAQ: HIVE) (BVC: HIVECO) said its wholly owned subsidiary BUZZ High Performance Computing Inc. (BUZZ HPC) has signed a five-year GPU cloud services agreement with an investment-grade enterprise customer worth approximately $350 million in total contract value. The deal is expected to add roughly $70 million in annualized revenue to BUZZ HPC and bring the unit’s total annualized revenue to about $180 million as deployment scales, with the upgraded cluster expected to become operational later this year at BUZZ HPC’s Bell AI Fabric facility in Merritt, British Columbia.
GPU cloud contract adds $70 million of annualized revenue
According to the company, the agreement spans five years and represents approximately $350 million in total contract value. BUZZ HPC expects the contract to contribute approximately $70 million in annualized revenue, pushing its total annualized revenue to roughly $180 million.
That figure comprises two components: approximately $35 million in active, realized annualized revenue today and approximately $145 million in contracted annualized revenue expected to come online through Q4 2026. HIVE said the contract is designed to generate long-term economics and recurring cash flow as the cluster reaches full deployment.
The new agreement is structured around a dedicated AI infrastructure cluster. BUZZ HPC will provide a system built around 2,016 NVIDIA Blackwell Ultra GPUs delivered in NVIDIA GB300 NVL72 rack-scale systems. The cluster will be interconnected using NVIDIA Quantum-X800 InfiniBand networking, and supported by VAST Data’s high-performance storage platform.
HIVE said the system has been designed in line with NVIDIA’s reference architecture to support large-scale AI training, inference, and advanced enterprise workloads.
Merritt facility to host cluster powered by renewable hydro
The company expects the cluster to become operational later this year at the Bell AI Fabric facility in Merritt, British Columbia. HIVE emphasized that the Merritt site is powered by 100% renewable hydroelectric energy and uses closed-loop liquid cooling technology.
The company said the cooling approach eliminates ongoing water consumption for cooling, describing it as part of its commitment to sustainable, high-performance AI compute infrastructure. HIVE also noted that the deployment is being built to run entirely on renewable power while relying on closed-loop direct liquid cooling technology designed to maximize energy efficiency without requiring ongoing water consumption.
HIVE framed the project as part of BUZZ HPC’s broader AI cloud growth effort, linking the deal to the company’s ability to secure large-scale, long-term commitments from investment-grade customers.
Capital outlay, deposit and expected revenue ramp
HIVE said it expects capital expenditures related to deployment—covering the accelerated computing cluster and associated hardware and service warranties—to total approximately $185 million. It also said BUZZ HPC will receive an upfront deposit of approximately 10% of the total contract value from the customer, or about $35 million based on the $350 million total contract value.
The company added that the $35 million deposit, along with HIVE’s previously announced financing initiatives and additional equipment financing, is expected to support the deployment and optimize its capital structure.
After completion, HIVE said it will retain ownership of the NVIDIA AI infrastructure, creating what it described as a long-lived strategic asset with potential for continued cash flows. The company also indicated that the five-year contract is anticipated to deliver an attractive return on invested capital, with upside tied to continued ownership, supported by what it called the long useful life of NVIDIA accelerated computing enabled by “industry-leading throughput per watt” and “lowest token cost.”
In terms of timing for revenue recognition, HIVE said the NVIDIA accelerated computing infrastructure is expected to be delivered and deployed in calendar Q4 of this year, when BUZZ HPC’s HPC/AI daily revenue is expected to reach approximately $500,000.
HIVE did not provide further breakdowns of utilization or pricing terms in the release, but it highlighted that the contract’s five-year term provides BUZZ HPC with longer-term contracted revenue visibility and supports a strategy focused on accelerated computing infrastructure serving Canadian sovereign AI requirements, global enterprises, and leading AI organizations internationally.
Executives cite momentum toward ARR target
Frank Holmes, Executive Chairman of HIVE, said the company’s work has shifted from scaling ASIC computing power and data center footprint to scaling GPU-based AI infrastructure. He said the agreement is another “important milestone” and referenced the company’s capacity for Tier III data center development in Canada, along with the potential to bring more GPUs online in the coming period.
“A year ago, our team was focused on rapidly scaling HIVE’s ASIC computing power and Tier-I data center footprint by over 300%. Today, we are applying that same discipline and execution to scaling our GPU-based AI infrastructure.”
Holmes also pointed to what he described as a “synergy” between HIVE’s ASIC and GPU businesses, emphasizing shared capabilities around securing renewable energy, building high-performance data centers and converting that energy into computing power.
Aydin Kilic, President and Chief Executive Officer of HIVE, said the agreement advances the company toward its year-end target of $200 million of annualized revenue for its GPU cloud business. He described the contract as featuring stable cash flows from an investment-grade customer and an upfront deposit of approximately 10% of total contract value, adding that proceeds from HIVE’s June 2026 0% convertible bond and additional debt financing are being used to support the deployment and “lever the purchase of the GPUs” to drive returns.
Craig Tavares, President and Chief Operating Officer of BUZZ HPC, said the contract demonstrates execution on large-scale AI infrastructure deployments and the company’s ability to secure long-term, high-quality customers. He also linked BUZZ HPC’s positioning to the use of NVIDIA infrastructure and partnerships including Bell and VAST Data.
Company builds vertically integrated AI infrastructure platform
HIVE said BUZZ HPC continues to scale its role as a Canadian AI cloud provider, delivering sovereign accelerated computing infrastructure and enterprise AI cloud services to customers in Canada and internationally. The company said the new agreement further demonstrates demand for BUZZ HPC’s infrastructure and its ability to translate the AI cloud platform into long-term contracted revenue.
In describing the deployment, HIVE said BUZZ HPC combines purpose-built AI infrastructure, renewable energy, NVIDIA accelerated computing, high-performance networking and enterprise cloud technologies to create a vertically integrated AI platform designed to serve global demand for AI.
For context and additional details, HIVE noted the agreement in its announcement published on Newsfile.
About HIVE Digital Technologies Ltd.
HIVE Digital Technologies Ltd. is a company focused on sustainable digital infrastructure, building and operating renewable energy-powered data centers for high-performance AI computing. Through its wholly owned subsidiary BUZZ High Performance Computing Inc., it provides sovereign AI cloud infrastructure, combining long-life digital infrastructure assets with renewable energy to generate diversified, long-term cash flows across AI infrastructure and digital asset mining.
