HIVE Digital Technologies signs a $220 million contract to build AI infrastructure in Canada
A major player in the mining and high-performance computing sector, HIVE Digital Technologies, has signed a three-year contract worth $220 million. The deal involves deploying GPU infrastructure for sovereign artificial intelligence in Canada. This strategic move underscores the growing demand for computing power for AI projects, particularly in the government and corporate sectors.
The company's subsidiary, BUZZ High Performance Computing, will install 2,304 Nvidia Grace Blackwell accelerators. The equipment will be located at a site in Merritt, British Columbia. The choice of location is no coincidence: Canada is actively developing its own AI ecosystem, striving for technological independence.
Timeline and Purpose
The capacities will be used for training and inference of corporate AI models from Cohere. These models are tailored for government agencies and businesses, implying high requirements for data security and confidentiality. The infrastructure launch is scheduled for late 2026 to early 2027.
From my perspective, this agreement is a landmark signal for the market. HIVE Digital Technologies is diversifying its business, moving away from purely mining operations toward the high-margin segment of AI infrastructure. The $220 million contract demonstrates that sovereign AI projects are becoming a driver of GPU demand, and companies with access to energy resources and equipment gain a competitive advantage. In the long term, we will see even more such deals as governments and large corporations seek to control their computing power.