HIVE Digital Technologies Ltd (TSX:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) announced that it has signed a five-year GPU cloud services agreement with an investment-grade enterprise customer valued at approximately $350 million, as the company expands its artificial intelligence infrastructure business through wholly owned subsidiary BUZZ High Performance Computing. The agreement is expected to generate approximately $70 million in annualized revenue and brings BUZZ HPC's total annualized revenue to about $180 million. That figure includes approximately $35 million in active, realized annualized revenue and $145 million in contracted revenue expected to come online through the fourth quarter of 2026.
Under the agreement, BUZZ HPC will deploy a dedicated AI infrastructure cluster comprising 2,016 NVIDIA Blackwell Ultra GPUs in NVIDIA GB300 NVL72 rack-scale systems. The cluster will use NVIDIA Quantum-X800 InfiniBand networking and VAST Data's high-performance storage platform and is being designed to support large-scale AI training, inference and other enterprise workloads. The cluster is expected to become operational later this year at the Bell AI Fabric facility in Merritt, British Columbia.
HIVE expects the NVIDIA infrastructure to be delivered and deployed during the fourth quarter, at which point the company's HPC and AI daily revenue is expected to reach approximately $500,000. HIVE expects capital expenditures for the deployment, including the accelerated computing cluster, associated hardware and service warranties, to total approximately $185 million. The customer will provide an upfront deposit of about $35 million, equivalent to approximately 10% of the contract's total value.
The company said that the deposit, alongside previously announced financing initiatives and additional equipment financing, to support the deployment. HIVE will retain ownership of the NVIDIA AI infrastructure following its deployment. The Merritt facility is powered by renewable hydroelectric energy and uses closed-loop liquid cooling technology designed to eliminate ongoing water consumption for cooling.
HIVE wrote that the infrastructure will combine renewable power with NVIDIA accelerated computing, high-performance networking and enterprise storage. Frank Holmes, HIVE's executive chairman, wrote that the company is applying its experience in scaling ASIC computing and data center infrastructure to its GPU-based AI business. "This new five-year agreement is another important milestone in that journey," Holmes said in a statement.
"With approximately 400 MW of capacity in Canada for Tier III data center development, we have the potential to bring over 120,000 GPUs online over the next 2 years." HIVE President and CEO Aydin Kilic said that the company remains focused on reaching $200 million in annualized revenue for its GPU cloud business by year-end. "The five-year term, expected stable cash flows from an investment-grade enterprise customer, and upfront deposit of approximately 10% of total contract value supports an attractive economic and return profile for this deployment," Kilic wrote. Craig Tavares, BUZZ HPC President and COO, added that the agreement reflects the company's continued execution on large-scale AI infrastructure deployments and expansion of its customer base.
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