HIVE Digital Plans CAD $3.5 Billion AI Gigafactory in Ontario

HIVE Digital Technologies announced plans to build a CAD $3.5 billion AI gigafactory in the Greater Toronto Area, marking a significant shift from its Bitcoin mining origins [1, 2]. The facility, developed through HIVE's subsidiary BUZZ High Performance Computing Inc., will have a dedicated 320 MW power allocation from Ontario’s clean electricity grid and is designed to host over 100,000 GPUs [1, 2]. Operations are expected to begin in the second half of 2027 [1, 2].

The company secured approximately 25 acres of land for CAD $58 million for the project [1, 2]. This expansion represents an 18-fold increase in HIVE's current GPU capacity, which stands at about 5,500 GPUs globally [1]. The 320 MW power capacity for the Ontario facility alone would expand HIVE's total global power footprint by roughly 38% from its existing 850 MW [1, 2]. Following the announcement on May 18, 2026, HIVE's stock surged between 28% and 40% [1, 2, 4].

HIVE's move reflects a broader trend among cryptocurrency miners to pivot towards AI infrastructure, driven by tougher economics in pure-play crypto mining due to Bitcoin halving events, increasing network difficulty, and market volatility [1]. The scale of HIVE's investment, at CAD $3.5 billion, distinguishes its approach, and the choice of Ontario aligns with a push for "sovereign compute" within Canada, leveraging the region's clean hydroelectric power and cooler climate [1, 2]. HIVE currently operates data centers in Canada, Sweden, and Paraguay, serving both Bitcoin and high-performance computing clients [3].

The ambitious project raises questions about HIVE's ability to execute, including managing construction, securing high-end GPU supply, and negotiating customer contracts, all while potentially maintaining existing mining operations [1]. Financing the CAD $3.5 billion capital commitment will be a key factor to watch, with potential avenues including equity raises, debt, government incentives, or customer pre-commitments [1]. For the broader crypto mining sector, HIVE’s pivot could accelerate a trend of companies repositioning themselves as energy-to-compute platforms [1]. The success of this large-scale bet on AI compute demand will determine if the investment justifies its significant cost [1].