HIVE Secures $129 Million Loan for AI Infrastructure

The firm will finance new NVIDIA GPU clusters to expand its sovereign AI capabilities within Canada.

Updated on Oct. 28, 2026 in Data Centers

HIVE Secures $129 Million Loan for AI Infrastructure

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HIVE Digital Technologies has finalized a $129 million credit facility to fund the acquisition of sovereign AI GPU clusters. This strategic financing is designed to support the expansion of high-performance infrastructure across Canada.

Why it matters

Securing this debt financing allows the company to build out advanced AI hardware capacity while avoiding the dilution of common shares. The expansion positions the firm to meet the growing demand for sovereign AI services through long-term infrastructure investment.

The credit facility features a 9.0% fixed interest rate and an 80% loan-to-cost ratio to support a $165 million GPU cluster purchase. This hardware investment includes 2,303 NVIDIA GB200 GPUs.

The players

HIVE Digital Technologies

This company is a provider of digital infrastructure that operates data centres across Canada, Sweden, and Paraguay.

BUZZ Alpha Cloud

This entity acts as the operating subsidiary responsible for the cloud services and hardware procurement within the HIVE group.

Cohere

This organization develops large language models and enterprise AI software solutions.

NVIDIA

This technology corporation designs the high-performance graphics processing units essential for modern artificial intelligence training and deployment.

The details

BUZZ Alpha Cloud will utilize these funds to procure massive computing power, supported by a three-year contract with Cohere valued at $225 million. The debt structure requires principal and interest to be amortized over the three-year term of the loan, with repayments sourced directly from contract revenue.

HIVE began building its digital infrastructure foundation in 2017.
The customer contract with Cohere was announced on June 18, 2026.
The credit facility was officially announced on October 28, 2026.
Delivery of the NVIDIA GB200 GPUs is expected in late Q4 2026.

The Tech Race

The adoption of NVIDIA GB200 GPU clusters signals a shift toward specialized hardware designed specifically for large-scale generative AI workloads. This investment replaces reliance on older, general-purpose computing systems to compete in the high-stakes sovereign AI infrastructure sector.

The expansion of sovereign AI infrastructure within Canada may improve local access to high-performance computing resources for domestic developers and businesses. By securing the hardware needed for advanced AI models, the company effectively increases the available cloud compute power for regional clients.

The takeaway

Companies are increasingly relying on long-term service contracts to back the debt required for expensive hardware upgrades. Investors and local stakeholders should monitor whether these high-value infrastructure projects successfully translate into stable, recurring revenue streams over the next three years.