Bitcoin Miner HIVE Plans $3.5B AI Data Center in Canada

HIVE Digital Technologies (NASDAQ: HIVE) has unveiled plans for a $3.5 billion AI-focused data center near Toronto, Canada. The 320-megawatt facility, spearheaded by its BUZZ HPC division, is designed to host more than 100,000 GPUs at full capacity, marking a significant move beyond Bitcoin mining into high-performance computing (HPC).

According to HIVE, the project will be located in the Toronto-Waterloo technology corridor, leveraging Ontario’s electricity grid and sustainable cooling systems to minimize environmental impact. The site acquisition spans 25 acres and includes a 320-MW power allocation, aiming for deployment in the second half of 2027. The construction phase is expected to generate over 800 jobs, with additional permanent technical roles to follow.

This expansion comes as HIVE increasingly diversifies its operations. The company, previously known as HIVE Blockchain Technologies until its 2023 rebranding, has pivoted toward AI and HPC applications alongside its core Bitcoin mining business. As of its fiscal Q3 2025 results, HIVE reported record revenue of $93.1 million, fueled by a 290% year-over-year hashrate growth to 25 EH/s and expanded operations in Canada, Sweden, and Paraguay.

Currently, HIVE operates approximately 5,500 GPUs for AI workloads, with infrastructure in place to scale up to 130,000 GPUs across its global data centers. The new Toronto-area facility represents a significant step in its AI strategy, building on recent milestones such as $30 million in AI cloud contracts secured in early 2026.

Market Impact and Trading Insights

HIVE’s announcement appears to have resonated with investors. Shares of HIVE surged over 27% on the day of the announcement, bringing year-to-date gains to approximately 33%, according to Yahoo Finance. This outperformance contrasts with broader industry challenges; many Bitcoin miners have struggled with weaker profitability due to depressed Bitcoin prices, currently trading at $76,514 (down 2.12% in 24 hours as of May 18, 2026).

While several miners, including CleanSpark and MARA Holdings, posted steep quarterly losses in Q1 2026, HIVE’s diversification into AI and HPC has likely insulated it from similar headwinds. For instance, competitors like TeraWulf have also noted rising contributions from HPC revenues, with AI-driven operations accounting for 60% of its Q1 revenue. The pivot to AI appears to be a growing trend among miners navigating Bitcoin’s volatile margins.

Beyond immediate trading implications, HIVE’s strategic investment in AI infrastructure positions it to capitalize on the surging demand for GPU-based computing power. The move aligns with broader industry shifts, as companies increasingly view AI and HPC as complementary revenue streams to traditional crypto mining. For investors, HIVE’s trajectory underscores the potential upside in hybrid Bitcoin-AI infrastructure plays.

Looking Forward

The planned AI data center is a long-term bet, with completion slated for late 2027. In the short term, HIVE’s performance will likely hinge on its ability to execute ongoing AI initiatives and manage Bitcoin mining profitability amid fluctuating market conditions. With its stock up 33% YTD and a growing foothold in AI, HIVE remains a company to watch in both the crypto and tech sectors.

Image source: Shutterstock