HIVE Digital Technologies Ltd. (NASDAQ: HIVE) announced it will invest approximately $3.1 million over five years to upgrade the fiber optic network at its Grand Falls Data Centre in New Brunswick. The company said the investment will support its conversion of the facility into a Tier III high-performance computing data center.

The upgrade will include dedicated high-capacity optical wavelength services with multiple 100 Gbps and 400 Gbps connections, according to the company. HIVE said delivery is expected to begin in the third quarter of 2026. The company is partnering with a Canadian carrier for the project, which will involve additional capital expenditures beyond HIVE's commitment.

The Grand Falls facility currently operates with 70 MW of gross electrical load and existing buildings and electrical infrastructure. HIVE subsidiary BUZZ High Performance Computing plans to convert the site into a 50 MW data center for enterprise, government and sovereign AI workloads.

"Connectivity is a prerequisite of AI factory development," said Aydin Kilic, President and CEO of HIVE. "By securing exclusive dedicated network capacity at Grand Falls, we are creating the infrastructure to service enterprise and sovereign AI customers with the redundancy and throughput the AI market demands."

The company said it is funding the project using proceeds from a recent $115 million zero percent exchangeable note issuance. HIVE reported plans to expand its GPU AI cloud offering from 5,500 GPUs to 11,000 GPUs this year.

HIVE operates data centers across Canada, Sweden and Paraguay, serving Bitcoin mining and high-performance computing clients. The company was founded in 2017 and describes itself as the first publicly listed company to mine digital assets using green energy.