HIVE’s BUZZ HPC Signs $350 Million AI Cloud Contract for 2,016 NVIDIA GPUs

The customer was not publicly identified. HIVE described it as an investment-grade enterprise customer, but the available announcement does not disclose the company’s name or the precise workloads it will run.

Revenue impact and ARR target

The contract is expected to contribute approximately $70 million in annualized revenue. HIVE said that would take BUZZ HPC’s total annualized GPU-cloud revenue to about $180 million, comprising approximately $35 million of active, realized revenue and roughly $145 million of contracted revenue expected to come online through the fourth quarter of 2026.

That figure would put BUZZ HPC close to HIVE’s stated $200 million year-end GPU-cloud ARR objective. The distinction between realized revenue and contracted ARR matters: the $180 million figure is a run-rate measure that depends on the planned infrastructure being delivered and brought online as expected.

HIVE also projects approximately $500,000 in daily HPC and AI revenue once the new deployment is operational. That is a company projection, not a reported revenue result.

Where and when the GPUs will be deployed

The cluster is expected to become operational in late 2026, or the fourth quarter, at the Bell AI Fabric facility in Merritt, British Columbia. The site is described as using renewable hydroelectric power and closed-loop liquid cooling.

The location supports HIVE’s broader positioning of its AI-compute business around Canadian data-center infrastructure and lower-carbon power. The company has also described approximately 400 megawatts of Canadian Tier III data-center capacity and a potential two-year deployment path exceeding 120,000 GPUs. Those figures describe planned or potential capacity, not GPUs already deployed under this contract.

How the build will be financed

HIVE expects the deployment to require approximately $185 million in capital expenditure. The customer is expected to provide a deposit of about $35 million, equivalent to 10% of the approximately $350 million contract value. The remainder is expected to be supported by other financing arrangements, including equipment financing and previously announced financing sources.

A notable feature of the agreement is that HIVE expects to retain ownership of the GPUs and supporting infrastructure after deployment. That gives the company continued ownership of the physical assets, but it also leaves HIVE responsible for executing the build, arranging financing and bringing the cluster online.

Why the contract matters to HIVE’s strategy

HIVE has historically been associated with Bitcoin mining, but it is building a second business around high-performance computing and AI infrastructure. The new agreement is the company’s second major AI-cloud commitment in roughly two months, according to reporting on the announcement.

The strategy is to use data centers, power capacity and specialized GPU infrastructure to serve enterprise AI demand rather than relying exclusively on cryptocurrency-mining revenue. HIVE has described a longer-term goal of reaching approximately $700 million in GPU-cloud ARR by 2028, but that target remains dependent on additional contracts, financing, hardware deployment and customer utilization.

How it fits with fiscal Q1 2027 results

The contract was announced alongside attention on HIVE’s fiscal first-quarter 2027 performance. HIVE reported $79.1 million in quarterly revenue, up 73.5% year over year, and had previously reported approximately $110 million in contracted GPU-cloud ARR.

The new agreement therefore represents a substantial increase in the company’s contracted AI-cloud pipeline. It does not mean that the full $350 million contract value has already been recognized as revenue, nor that the entire projected $180 million annualized run rate is currently being realized. The planned cluster is still scheduled for late-2026 deployment, and the company’s forecasts remain subject to construction, financing, supply, timing and utilization risks.

Bottom line

BUZZ HPC agreed to build and operate a dedicated 2,016-GPU AI cloud cluster for an unnamed investment-grade enterprise customer under a five-year contract worth approximately $350 million. HIVE expects the deal to add about $70 million in annualized revenue and lift BUZZ HPC’s annualized GPU-cloud revenue to roughly $180 million.

The contract strengthens HIVE’s shift toward AI infrastructure, but the near-term figures are best understood as contracted or projected run-rate metrics. The key milestones are the financing and construction of the approximately $185 million cluster, its expected Q4 2026 launch in Merritt, and the conversion of contracted capacity into realized revenue.