HIVE's BUZZ Signs $30 Million in AI Cloud Contracts, Accelerating Global HPC Tier-III Data Center Expansion

Core Insights - BUZZ High Performance Computing, a subsidiary of HIVE Digital Technologies Ltd., has signed customer agreements worth approximately $30 million over two years, marking a significant advancement in its AI cloud strategy [2][10]. Group 1: Business Expansion and Revenue Projections - The initial phase of BUZZ's AI-optimized GPU deployment at its Canada West location in Manitoba will consist of 504 liquid-cooled Dell server-based GPUs, expected to generate around $15 million in annual recurring revenue (ARR) once fully operational [4][5]. - Total annualized revenue for HIVE's HPC segment, driven by BUZZ, is projected to increase from approximately $20 million to roughly $35 million, reflecting strong demand for BUZZ's AI cloud platform [5]. - The company aims to scale its HPC GPU AI cloud business to approximately $140 million in ARR over the next year, contingent on market conditions and successful infrastructure deployment [10]. Group 2: Infrastructure and Investment - To support growth, the company anticipates incurring capital expenditures related to GPU acquisition and necessary infrastructure, including electrical and cooling systems [6]. - Constructing a fully self-funded Tier-III facility with similar GPU capacity could require around $70 million in capital expenditures, highlighting the capital intensity of advanced GPU clusters [8]. - The company is pursuing vendor financing arrangements and strategic partnerships to scale efficiently while minimizing upfront capital intensity [9]. Group 3: Market Position and Future Outlook - HIVE has established itself as a long-standing operator in the crypto Tier-I data center space, leveraging this foundation to build a high-growth AI cloud platform across Canada, Sweden, and Paraguay [7]. - Demand for high-performance, power-efficient AI compute is expanding globally, positioning BUZZ as a growth catalyst in the AI supercycle [11][13]. - BUZZ has been recognized for having one of the fastest data center networks globally, validating its technical architecture and execution capabilities [12].