In brief
- HIVE says its 32-megawatt Big Boden facility in Sweden could bring in $45 million a year in AI colocation revenue.
- The proposed 10-year deal is still nonbinding, and financing and final lease terms remain under negotiation.
- The project is separate from HIVE's $185 million in contracted GPU-cloud annualized revenue.
Bitcoin miner HIVE Digital Technologies is targeting $45 million in annual revenue from an AI data center in Sweden, but has yet to secure a final lease.
In its latest earnings update, HIVE reiterated that its 32-megawatt Big Boden facility could generate that amount through a long-term colocation deal. The revenue would depend on a definitive agreement, financing, facility upgrades and the project entering service.
The company first announced the proposal in June. It involves an unnamed, investment-grade Swedish technology company and envisages a lease of up to 10 years. On Tuesday's earnings call, CEO Aydin Kilic said the parties were negotiating deposits, termination rights and other terms that could affect financing costs. He said a lender's consultant had visited the site the previous week.
“We do not want to rush into a deal just for the sake of reporting new top-line revenue,” Kilic said, according to the earnings call transcript.
HIVE expects to seek financing for the Boden project once it has secured a signed lease, potentially through corporate bonds. The company has not announced when negotiations are expected to conclude.
From crypto mining to AI infrastructure
The existing data center would also require a substantial makeover. HIVE plans to retrofit it to accommodate up to 10,000 Nvidia GB300 GPUs, using liquid cooling to support high-density computing racks.
While the facility has a 32-megawatt utility connection, the proposed customer would get approximately 25 megawatts of usable computing capacity, with the rest of the power supporting data center operations.
“This site has evolved from a GPU compute facility supporting Ethereum,” Kilic said when announcing the letter of intent, describing plans to convert the site into a more powerful AI facility.
The expansion is part of HIVE's broader push beyond Bitcoin mining, which has already led to several large GPU-cloud contracts.
In June, HIVE signed a major three-year AI computing deal with Bell Canada and Cohere, covering 2,304 Nvidia GPUs as the company expanded beyond crypto mining.
HIVE now reports $185 million in contracted GPU-cloud annualized run-rate revenue, but only $40 million is live. The balance is contracted capacity that has not yet entered service.
The company is aiming for approximately $700 million in total high-performance computing annualized revenue by the end of 2028. That figure includes projects that require additional financing, construction and customer commitments.
HIVE's next milestone for Boden is to secure a definitive lease before moving ahead with project financing.
Source: decrypt.co. Adapted by NBTC.
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