HIVE Digital Technologies (Nasdaq/TSX: HIVE) announced that its subsidiary BUZZ High Performance Computing has acquired two adjacent parcels of land totaling 25 acres in the Greater Toronto Area for a combined CAD $58 million. The company plans to build an AI data center described as an “AI gigafactory” at the site, with a projected total investment of approximately CAD $3.5 billion.

Facility Details and Timeline

The planned facility is expected to support approximately 320 megawatts of power capacity and house more than 100,000 graphics processing units (GPUs). BUZZ HPC paid CAD $46 million for the 21-acre main parcel and CAD $12 million for an adjacent four-acre parcel, both located along the Toronto-Waterloo innovation corridor. Operations are targeted for the second half of 2027.

The project would generate an estimated 800 construction jobs and several hundred permanent skilled positions upon completion, according to the company.

From Bitcoin Mining to AI Infrastructure

The acquisition continues HIVE’s strategic shift from pure Bitcoin mining toward AI and high-performance computing. HIVE previously raised $115 million to expand its global infrastructure footprint, and the Toronto project would bring its total global capacity to over 850 megawatts, comprising 450 megawatts operational and 400 megawatts in pipeline development. In Canada alone, the company would control approximately 130,000 GPUs worth of infrastructure capacity.

HIVE’s leadership framed the project as part of a broader push to build “sovereign AI infrastructure” in Canada, positioning the facility as an alternative to foreign cloud providers for domestic AI developers and enterprises. The site would utilize Ontario’s electricity grid, which relies significantly on nuclear, hydroelectric, and renewable sources, with closed-loop cooling systems designed to minimize water consumption.

Market Response and Execution Risks

HIVE shares climbed approximately 26% following the announcement, reflecting investor enthusiasm for the AI pivot. The move aligns with a wider trend among former Bitcoin mining companies repositioning their power infrastructure for AI workloads, where demand for large-scale computing capacity continues to outstrip supply.

However, the project carries meaningful execution risk. The CAD $3.5 billion total investment is substantial relative to HIVE’s current market capitalization, and the 2027 timeline introduces uncertainty around future power costs, GPU pricing, and competitive dynamics in the rapidly evolving AI infrastructure market. While Ontario’s clean energy grid offers potential advantages in terms of cost and environmental positioning, the scale of the build-out remains ambitious for a company still in the process of transitioning its business model.

Crypto Mining’s AI Convergence

HIVE is part of a growing cohort of crypto mining companies pivoting toward AI data centers. The broader trend has accelerated in 2026, driven by the recognition that existing power procurement contracts, cooling infrastructure, and data center expertise translate well to the AI compute market. Institutional investors have taken note: Leopold Aschenbrenner’s Situational Awareness fund recently increased its exposure to publicly traded Bitcoin miners with AI infrastructure potential, further validating the convergence thesis.

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