Shares of HIVE Digital Technologies Ltd (NASDAQ:HIVE) surged 33.1% in premarket trading Monday following an announcement that a HIVE subsidiary has bought land to develop a large AI infrastructure project in the Greater Toronto Area.
BUZZ High Performance Computing Inc., a unit of HIVE, acquired about 25 acres of property for a total of $58 million. The purchase consists of a principal parcel of approximately 21 acres bought for $46 million and an additional roughly 4-acre site acquired for $12 million. The combined property carries a 320 megawatt power allocation intended for the planned facility.
The site is planned as an AI gigafactory with 320 megawatts of utility capacity and is being positioned to become one of Canada’s largest such facilities. At full build-out, the installation is being designed to host more than 100,000 graphics processing units - GPUs - to support AI compute workloads. The company also stated that the new infrastructure will support approximately 130,000 GPUs across its Canadian operations.
HIVE has set a target to bring the project online in the second half of 2027 and estimates total capital expenditure for the development at about CAD 3.5 billion. The company expects the construction phase to generate over 800 jobs and for the completed facility to sustain several hundred permanent, high-skill positions.
Geographically, the site sits between Toronto and Waterloo, placing it within the corridor the company describes as Canada’s technology and AI hub. HIVE said the facility will be powered by Ontario’s clean grid and will incorporate closed-loop cooling systems in its design.
The land purchase and power allocation add to HIVE’s broader global footprint. The company reported it now controls over 850 megawatts of power worldwide, which includes 450 megawatts of currently operating data center capacity and a pipeline of 400 megawatts of additional capacity that is expected to come online in 2027. Within Canada specifically, HIVE operates 100 megawatts of data center capacity and has the 320 megawatt pipeline referenced for 2027.
Operationally today, HIVE runs 5,500 GPUs dedicated to AI compute and maintains a 70 megawatt facility in New Brunswick. The newly announced Ontario development and related pipeline are planned to substantially expand the company’s Canadian compute footprint.
Key points
- HIVE subsidiary BUZZ purchased about 25 acres for $58 million, securing a 320 MW power allocation for an AI gigafactory.
- The project is designed to host more than 100,000 GPUs at full build-out and is targeted to be operational in the second half of 2027, with an estimated CAD 3.5 billion in capital costs.
- The development is expected to create over 800 construction jobs and hundreds of permanent high-skill positions; it supplements HIVE’s global footprint of over 850 MW of power and 450 MW of operating data centers.
Risks and uncertainties
- Timing uncertainty - the project is targeted to come online in the second half of 2027, which is a planned timeline for a large-scale development.
- Financing and capital requirements - the project requires approximately CAD 3.5 billion in investment to reach full build-out.
- Execution scale - the facility is planned to host more than 100,000 GPUs and expand Canadian GPU capacity to roughly 130,000, representing a substantial operational ramp.