HIVE Digital Technologies has made a big artificial intelligence infrastructure contract via its subsidiary company BUZZ High Performance Computing (BUZZ HPC). The firm has made a three-year cloud computing deal worth about $220 million.
The deal, announced with Bell AI Fabric for AI company Cohere, marks a significant expansion of the company’s high-performance computing (HPC) operations and adds a new source of contracted revenue beyond its Bitcoin mining business.
Under the agreement, BUZZ HPC will deploy 2,304 NVIDIA Grace Blackwell graphics processing units (GPUs) at a Bell Canada data center in Merritt, British Columbia.
Source: Power Analysis
The infrastructure will support Cohere’s artificial intelligence platforms and services used by enterprise and government customers across Canada.
The project is expected to enter service between late 2026 and early 2027. Once operational, HIVE Digital Technologies estimates the deployment will generate approximately $70 million in annual recurring revenue, raising the company’s contracted HPC revenue target to more than $100 million.
HIVE Digital Technologies Adds New Revenue Stream
The contract represents one of the largest AI infrastructure deployments announced by HIVE Digital Technologies as the company continues expanding its presence in the high-performance computing sector.
According to the agreement, BUZZ HPC will provide the computing capacity required to power Cohere’s artificial intelligence workloads. The deployment will utilize NVIDIA Grace Blackwell GPUs, which are designed for advanced AI model training and inference applications.
HIVE Digital Technologies stated that funding for the infrastructure purchase will come from a portion of the proceeds generated through its $115 million convertible note financing completed in April.
The company previously indicated that the financing would support additional investments in AI-focused hardware and computing infrastructure. The new contract provides a defined use case for part of that capital deployment.
Cohere Deployment Linked to Canadian AI Infrastructure
The infrastructure will be installed at Bell Canada’s purpose-built data center in British Columbia and will support Cohere’s AI systems serving enterprise and government clients.
Cohere develops large language models and artificial intelligence tools designed for business and public-sector applications. The company previously established a partnership with Bell in July 2025. The newly announced deployment provides the computing infrastructure supporting that relationship.
The agreement also aligns with broader efforts to increase AI computing capacity within Canada. The Government of Canada has already invested more than $2 billion in its Sovereign AI Compute Strategy and has been known to have invested $240 million into Cohere before.
Under the new agreement, the company has ensured that the computing capabilities would be situated within the country’s territory, which will enable AI processes that are to be applied by Canadian clients.
HIVE Digital Technologies HPC Expansion Moves Forward
The newest agreement has come following several actions taken by HIVE Digital Technologies, in an effort to grow its operations with regard to AI and HPC.
Starting from 2022, the company has begun allocating part of its GPU capabilities to process AI-oriented loads.
In November, HIVE secured an agreement with Dell for new GPU systems. The company later completed a $115 million convertible note offering in April, providing capital for additional infrastructure purchases.
The Cohere deployment adds to HIVE Digital Technologies’ existing GPU operations, which currently generate approximately $35 million in annual revenue.
Following the completion of the new contract, the company’s contracted HPC revenue target is expected to exceed $100 million annually.
HPC Revenue Outlook
| Revenue Category | Estimated Annual Revenue |
| Existing GPU Operations | Approximately $35 million |
| New Cohere Contract | Approximately $70 million |
| Contracted HPC Revenue Target | More than $100 million |
Larger Data Center Plans Remain Under Development
Beyond the Cohere deployment, HIVE Digital Technologies is also pursuing a larger AI infrastructure project in the Greater Toronto Area.
The company has outlined plans for a 320-megawatt AI data center designed to support more than 100,000 NVIDIA GPUs when fully built. In terms of HIVE, this facility could contribute roughly $360 million in annual recurring revenue at peak operation capacity.
The corporation has set itself an even more ambitious target of generating HPC annualized revenue of $660 million by 2028.
These targets remain tied to future infrastructure development and deployment milestones.
Market Response Following Announcement
Shares of HIVE Digital Technologies rose approximately 9% following the announcement. Over the previous month, the stock had gained nearly 24%, according to Yahoo Finance data.
Source: Yahoo Finance
The broader digital asset mining sector also recorded gains. The Coin Shares Bitcoin Mining ETF (WGMI), which includes HIVE Digital Technologies among its holdings, was up 5.4% on the day and had advanced more than 30% during the previous month.
HIVE Digital Technologies currently ranks as the eighth-largest holding within the ETF. Moreover, the newly announced contract provides HIVE Digital Technologies with a multi-year source of contracted revenue tied to AI computing infrastructure.
