HIVE Digital Technologies has secured a significant $220 million contract, marking a crucial development in the Canada sovereign AI infrastructure landscape with Bell Canada. Over the next three years, HIVE will deploy 2,304 Nvidia Grace Blackwell GPUs at Bell Canada’s AI Fabric facility located in Merritt, British Columbia. This strategic collaboration also involves Cohere and is focused on building a robust AI infrastructure to serve Canadian government and corporate clients. The announcement of this contract has notably propelled HIVE shares by 10%, reflecting confidence in the company’s transformative approach from bitcoin mining to high-performance computing.
Contract Specifics: Canada Sovereign AI Infrastructure Contract with Bell Canada
The $220 million Canada sovereign AI infrastructure contract involves a collaboration between HIVE Digital Technologies, Bell Canada, and Cohere. This contract entails the deployment of 2,304 Nvidia Grace Blackwell GPUs. These GPUs will be installed at Bell Canada’s AI Fabric facility in Merritt, British Columbia, providing a dedicated compute layer for Cohere’s enterprise AI models targeting Canadian government and corporate clients. An important aspect of this initiative is that all infrastructure will remain physically on Canadian soil. The deployment is scheduled to commence in late 2026 and is expected to be fully operational by early 2027. This project is instrumental in bolstering the digital infrastructure needed for AI advancements in Canada.
The $220 million three-year GPU cloud contract with Bell Canada and Cohere adds roughly $70 million in annual recurring revenue (ARR) to HIVE Digital Technologies. The contract is structured as a GPU cloud agreement over three years. This ARR increase is directly associated with the contracted GPU compute services. The addition expands HIVE’s recurring revenue base and contributes to the company’s contracted HPC revenue profile.
Combined with about $35 million of currently realised ARR, HIVE’s contracted high-performance computing (HPC) revenue target now exceeds $100 million. The $35 million figure represents HIVE’s current realised ARR prior to the Bell contract. The resulting contracted HPC revenue target is the cumulative total of realised and newly contracted ARR. These figures reflect the financial impact of the Bell Canada and Cohere agreement on HIVE’s recurring revenue.
HIVE Digital Technologies has secured the Canada sovereign AI infrastructure contract with Bell Canada valued at $220 million and involving the deployment of 2,304 Nvidia Grace Blackwell GPUs at Bell Canada’s Merritt facility. The three-year agreement with Bell and Cohere will keep infrastructure on Canadian soil and is expected to add roughly $70 million in annual recurring revenue, pushing HIVE’s contracted HPC revenue target above $100 million.
