HIVE Digital Technologies Ltd (HIVE (HIVE)) shares traded slightly lower on Tuesday after the company revealed plans for a massive AI data center hub near Toronto. The crypto mining and high-performance computing firm, through its subsidiary BUZZ High Performance Computing Inc., is building what it calls an AI gigafactory—a facility that could eventually support more than 100,000 GPUs.
This is one of the largest proposed AI infrastructure projects in Canada, and it's part of a broader push by the company to pivot from crypto mining into high-performance computing for artificial intelligence workloads.
The Ontario Expansion
BUZZ has acquired about 25 acres across two adjacent parcels in the Greater Toronto Area, paying roughly CAD$58 million combined. The site has access to nearly 320 megawatts of utility power, and management expects the facility to come online during the second half of 2027.
The total investment could approach CAD$3.5 billion, according to the company. Executives expect the facility to generate hundreds of permanent technology positions alongside more than 800 construction jobs. The facility will run on Ontario's clean electricity grid and use closed-loop cooling systems that avoid water consumption.
Canada's AI Infrastructure Push
Frank Holmes, executive chairman of HIVE Digital, framed the initiative as part of Canada's broader AI independence strategy. "AI is the new industrial base and compute is the factory floor," Holmes said. He added that the facility could become one of North America's largest domestically controlled AI computing clusters.
CEO Aydin Kilic noted that the company now controls more than 850 megawatts globally across operating and pipeline facilities. HIVE currently operates 5,500 GPUs for AI computing workloads, and Kilic said the infrastructure pipeline could eventually support nearly 130,000 GPUs.
Strategic Location
The proposed development sits between Toronto and Waterloo, two major Canadian technology hubs. Management highlighted proximity to the University of Toronto, the Vector Institute, and Waterloo's engineering ecosystem. Craig Tavares, president and COO of BUZZ HPC, called the investment critical for Canada's long-term AI competitiveness.
The announcement arrives amid rising global competition around sovereign AI infrastructure and domestic computing capacity. Countries and companies are racing to build out AI compute capabilities, and this project positions HIVE as a key player in Canada's AI infrastructure landscape.
According to market data, HIVE stock has gained over 65% in the past year. Investors can gain exposure to the stock via the Schwab Crypto Thematic ETF (STCE).
HIVE Price Action: HIVE Digital Technologies shares were down 4.62% at $3.30 at the time of publication on Tuesday.
