#What is HIVE Digital Technologies planning?
HIVE Digital Technologies has announced ambitious plans to construct a 320 megawatt AI data center in Ontario, specifically in the Greater Toronto Area. This facility, which HIVE terms a gigafactory, will host over 100,000 GPUs when fully operational. The undertaking represents a significant investment of CAD $3.5 billion, equivalent to approximately $2.5 billion USD, marking it as one of the largest investments in AI infrastructure from a company traditionally known for Bitcoin mining.
The market responded positively, with HIVE’s stock rising between 25% and 28% right after the announcement was made on May 18.
#What details do we know about the construction of the facility?
HIVE has purchased around 25 acres of land in the Toronto-Waterloo corridor for CAD $58 million. To power this data center, the company has obtained a 320 megawatt power allocation from Ontario's clean energy grid, which relies on nuclear, hydro, and renewable energy sources. Notably, the facility will incorporate closed-loop cooling systems intended to reduce water usage. Operations are set to commence in the latter half of 2027. This project is expected to generate over 800 construction jobs, along with hundreds of permanent skilled positions once it begins operations.
#How will HIVE transition its capabilities?
Currently, HIVE operates approximately 5,500 GPUs for AI computing purposes. The leap to more than 100,000 GPUs represents an 18-fold increase in deployment. However, this Ontario gigafactory is not HIVE's only growth initiative; the company is developing a 70 megawatt site in New Brunswick, as part of a broader plan that aims to support around 130,000 GPUs in total. Overall, HIVE is working towards a global power capacity of about 850 megawatts across its operations.
#What does this investment mean for HIVE?
With a reported fiscal year 2026 revenue of $297.8 million, an increase of 158% year-over-year, HIVE’s CAD $3.5 billion capital commitment stands out as a highly ambitious move. Securing financing for this significant expansion will likely involve a mix of debt, equity, strategic partnerships, or advance customer contracts.
In this competitive landscape, major AI firms like Microsoft, Google, and Amazon have prioritized net-zero commitments, which underscores the importance of the carbon footprint associated with their computing infrastructures. A facility powered by Ontario's clean energy grid places HIVE favorably in this regard.
The competitors include companies such as CoreWeave and Lambda, among others, as well as a wave of well-funded startups eager to build or lease AI compute infrastructure. Hyperscalers are also investing tens of billions each year in their own data centers, intensifying the need for HIVE to establish a solid foothold in the market.