HIVE Digital Technologies Ltd (NASDAQ:HIVE) shares traded lower during Tuesday's premarket session after the company unveiled a major Canadian AI infrastructure expansion plan.

The crypto mining and high-performance computing company plans to build a large-scale AI data center hub near Toronto through its subsidiary, BUZZ High Performance Computing Inc.

The project includes a planned AI gigafactory capable of supporting more than 100,000 GPUs at full capacity.

The development marks one of Canada's largest proposed AI infrastructure projects.

Ontario Expansion

BUZZ acquired roughly 25 acres across two adjacent parcels in the Greater Toronto Area. The company paid approximately CAD$58 million combined for the properties.

The site carries access to nearly 320 megawatts of utility power. Management expects the project to enter service during the second half of 2027.

The company estimated that the total investment could approach CAD$3.5 billion. Executives expect the facility to generate hundreds of permanent technology positions alongside more than 800 construction jobs.

Management said the facility will rely on Ontario's clean electricity grid. The project also plans to use closed-loop cooling systems that avoid water consumption.

Canada AI Infrastructure Push

Frank Holmes, executive chairman of HIVE Digital, framed the initiative as part of Canada's broader AI independence strategy.

"AI is the new industrial base and compute is the factory floor," Holmes said.

Holmes added that the facility could become one of North America's largest domestically controlled AI computing clusters.

CEO Aydin Kilic said the company now controls more than 850 megawatts globally across operating and pipeline facilities.

Kilic said HIVE currently operates 5,500 GPUs for AI computing workloads.

He added that the company's infrastructure pipeline could eventually support nearly 130,000 GPUs.

Strategic AI Corridor

The proposed development sits between Toronto and Waterloo, two major Canadian technology hubs. Management highlighted proximity to the University of Toronto, the Vector Institute and Waterloo's engineering ecosystem.

Craig Tavares, president and COO of BUZZ HPC, called the investment critical for Canada's long-term AI competitiveness.

The announcement arrives amid rising global competition around sovereign AI infrastructure and domestic computing capacity.

According to Benzinga Pro, HIVE stock has gained over 65.55% in the past year. Investors can gain exposure to the stock via Schwab Crypto Thematic ETF (NYSE:STCE).

HIVE Price Action: HIVE Digital Technologies shares were down 4.62% at $3.30 at the time of publication on Tuesday, according to Benzinga Pro data.

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