The BUZZ  AI  Cloud  Expansion initiative by HIVE Digital Technologies Ltd. (“HIVE”) announces a strategic deployment of high‑performance AI infrastructure in partnership with Dell Technologies to accelerate Canada’s sovereign AI ambitions. In this update we outline the key terms, projected financial impact, and risk considerations for the expansion.

Strategic Agreement & Infrastructure Deployment

HIVE, through its wholly‑owned subsidiary BUZZ High Performance Computing (“BUZZ”), has executed an agreement with Dell to deploy a 63‑node cluster of liquid‑cooled Dell PowerEdge XE9680L servers, comprising 504 of the latest‑generation GPUs at the Bell AI Fabric data centre.

The fully integrated Dell IR5000 rack solution will be delivered and installed at the Bell facility, leveraging the existing partnership between BUZZ and Bell Canada for a sovereign‑AI cloud footprint.

Growth Targets & Financial Outlook

BUZZ has set out the following ambitious targets:

• A pipeline of over 6,000 latest‑generation GPUs scheduled for deployment by end‑2026, in addition to the more than 5,000 GPUs already operating, yielding a total installed base of over 11,000 GPUs by end‑2026.
• Projected incremental annual recurring revenue (ARR) of approx. US$120 million, with an anticipated operating margin of ~80% after electrical and data‑centre costs, for the BUZZ AI Cloud segment. This is in addition to the company’s existing ~US$20 million ARR.
• A flagship site in Grand Falls, New Brunswick, Canada: a 70‑MW data‑centre campus on 32.5 acres, to be upgraded to Tier III+ (PUE < 1.3) and capable, on a reference architecture, of supporting over 25,000 latest‑generation GPUs.

These targets reflect substantial scale‑up of BUZZ’s infrastructure, aligning with the broader AI “super cycle” demand for high‑performance GPU compute.

Risk Factors & Execution Considerations

While the growth thesis is compelling, several caveats warrant attention:

• The quoted US$120 million ARR and 80% margin are non‑GAAP estimates and not guaranteed.
• Timely hardware delivery, installation of liquid‑cooling solutions at scale, and full site commissioning remain execution risks. A delay or cost overrun in any of these could materially affect the projection.
• Utilisation, electricity pricing, colocation contract terms, and rack‑density matters will drive the realised margin. Any adverse movement in those variables could erode profitability.
• The assumed conversion of existing infrastructure (e.g., Tier I to Tier III+) and the transition to full operations by H2 2026 each carry project‑risk.

Thus, while the strategic trajectory is well‑defined, monitoring near‑term operational milestones is critical (see “What to watch” below).

What to Watch

Key near‑term milestones to monitor include:

• Confirmation of the delivery and installation of the Dell IR5000 racks at the Bell AI Fabric site.
• Procurement and long‑lead‑component status for the Canadian and Swedish sites, targeted for go‑live in H2 2026.
• Customer commitments and utilisation rates for the BUZZ AI Cloud; early book‑ins will de‑risk the ARR projection.
• Upgrades at the Grand Falls campus to Tier III+ status, and commissioning of the expanded GPU capacity.
• Power‑contract renewals and electricity cost trends, given their significance to margin outcomes.

Progress on these items will help validate the projection of >11,000 GPUs and ~US$120 million ARR by end‑2026.

Outlook for Corporate/Industry Readers

For financial professionals and infrastructure‑investors, the BUZZ AI Cloud Expansion positions HIVE as a dual‑engine infrastructure player: both in high‑performance computing (AI/GPU) and in sustainable digital‑asset mining. The scalability of GPU infrastructure, the margin leverage from efficient cooling and power, and the sovereign‑AI positioning offer a differentiated growth vector. From an industry standpoint, the pivot to repurposing existing data centres and leveraging liquid‑cooling signals efficiency gains in the large‑scale AI cloud build‑out.

However, prudence dictates scrutiny of execution risks and margin sensitivity. The business case is compelling only if utilisation, cooling/power efficiency, and contract economics all align favourably.

In summary, the BUZZ  AI  Cloud expansion by HIVE, outlines a clear growth roadmap: over 11,000 GPUs by end‑2026, ~US$120 million incremental ARR, and an 80% operating margin (post‑power/data‑centre). These projections reinforce HIVE’s ambition to scale its AI‑cloud business alongside its digital‑asset mining operation. Nevertheless, execution risk remains, and momentum will depend on timely deployment, cost control, and client uptake.