HIVE inks $220M sovereign AI GPU cloud deal with Bell
HIVE signed a three-year, $220 million contract with Bell to build a sovereign AI GPU cloud in Canada and expects about $70 million in annual recurring revenue when service begins in late 2026 to early 2027.
HIVE Digital Technologies’ BUZZ High Performance Computing unit finalized a three-year contract valued at roughly $220 million with Bell to build a sovereign AI GPU cloud in Canada. Deployment of the service is expected to begin in late 2026 to early 2027 and is projected to deliver about $70 million in annual recurring revenue once in service.
The agreement covers a GPU cluster of 2,304 Nvidia Grace Blackwell processors configured in Nvidia GB200 NVL72 rack-scale systems. The racks will be networked with Nvidia Quantum InfiniBand and use liquid cooling. BUZZ HPC will place the cluster at Bell’s data center in Merritt, British Columbia.
The technology stack combines Bell AI Fabric’s data centers and connectivity, Cohere’s enterprise AI models, and BUZZ HPC’s GPU cloud infrastructure. The contract is described by the companies as a sovereign solution that keeps customer data in Canadian data centres and is aimed at enterprise and government customers.
HIVE said the AI cloud will run on renewable energy and is designed for low power usage effectiveness. The company is funding part of the Blackwell system purchase with proceeds from a $115 million convertible note financing completed in April.
HIVE expects the contracted deployment to add roughly $70 million in contracted annual recurring revenue to its current realized ARR of about $35 million. The company reported fiscal 2026 revenue of $297.8 million, a 158% increase year over year, and said its HPC business generated a record $19.5 million in revenue.
On the same day HIVE announced the Bell contract, the Boden Municipal Council approved HIVE’s purchase of the 32-megawatt Big Boden data center in Sweden. HIVE has operated at the site since 2018 and has invested more than 960 million Swedish krona, about $100 million; the company plans upgrades to Tier III standards to support enterprise-scale AI workloads.
HIVE Chairman Frank Holmes wrote in the company statement that the deployment “brings together Canadian connectivity and compute, in Canadian data centres, running Canadian AI foundational models.” He added the objective is to “convert clean energy into intelligence at scale and make Canada one of the most important sovereign AI jurisdictions on Earth.”
Following the announcement, HIVE’s shares rose more than 11% in pre-market trading to $4.40 from the prior close of $3.97.
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