HIVE Digital Technologies is moving ahead with a $3.5 billion artificial intelligence gigafactory in Toronto. The project, announced by the crypto-mining firm, is one of the largest single-site AI infrastructure investments in Canada to date.
What the gigafactory will house
The facility is designed to host high-density computing clusters for training and running large-scale AI models. HIVE says the plant will be built with a focus on energy efficiency and will tap Ontario’s electricity grid, which the company argues offers a clean and reliable supply. The gigafactory is expected to include liquid-cooled server racks and on-site backup power systems.
Why Toronto
Toronto has become a hub for AI research and development, anchored by the Vector Institute and a cluster of startups and university labs. HIVE’s choice of the city reflects the company’s bet that proximity to talent and existing digital infrastructure will give it an edge in securing clients for AI compute services. The firm hasn’t specified a precise address or whether the site is already under its ownership.
HIVE’s pivot from crypto to AI
HIVE started as a bitcoin miner and has been gradually retooling its data centers to handle AI workloads. The Toronto gigafactory marks its most aggressive push yet into high-performance computing. The company says the shift is driven by rising demand for GPU-powered cloud services from enterprises and research institutions — demand that has outstripped supply in North America.
What’s still unknown
HIVE has not disclosed a timeline for construction or when the gigafactory would begin operations. The $3.5 billion price tag raises questions about financing: the company’s market cap sits well below that figure, and it has not announced a funding partner or government subsidy. Investors will be watching for details on capital structure and any long-term power purchase agreements when HIVE next reports earnings.
