HIVE's Frank Holmes reveals a 15-year secret for AI factories

Neo

April 1, 2026 2 min read

HIVE
NVDA

The world of data centers is undergoing a massive transformation, moving from a corporate expense to a primary engine for economic growth.

Frank Holmes, the Executive Chairman of HIVE Digital Technologies , believes this "paradigm shift" is redefining how countries and companies view digital infrastructure.

In a recent discussion, Holmes detailed how HIVE is leveraging stable, low-cost energy to build what industry leaders like Nvidia now call the " AI factory ."

From corporate expense to economic output

According to Holmes , the traditional view of data centers as simple line items for a Chief Financial Officer (CFO) is fading. In the past, CFOs focused almost exclusively on cutting costs in these facilities.

However, the rise of artificial intelligence has changed the conversation.

“But now when you have the concept of AI factory, it's reported to the CEO of the bank or the company or the country," Holmes explained.

"And it is about generating economic output."

This shift is vital for the future of high-performance computing, where these "factories" are seen as assets that generate wealth rather than just consuming budget.

The 15-year power play

Energy remains the most critical resource for this new era. Holmes highlighted a major development in Paraguay : a 15-year stable electrical contract priced at approximately 4 cents per kilowatt.

This long-term stability is powered by hydroelectricity, making it an "extremely attractive" option for massive technology providers, or hyperscalers.

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HIVE (Nasdaq: HIVE), which was founded in 2017 as the first publicly listed company to mine digital assets with green energy, is already the biggest player in the region.

The company is working to upgrade its infrastructure from Tier-I to Tier-III facilities to support these demanding AI workloads.

On March 18, 2026, HIVE announced that its BUZZ AI Cloud platform in Asunción, Paraguay, is officially operational.

HIVE currently operates data centers across Canada, Sweden, and Paraguay. By layering AI and high-performance computing onto its existing 300-megawatt renewable power base, the company aims to provide environmentally responsible solutions for the digital economy.

As regional demand in South America grows, HIVE plans to scale its Tier-III expansion based on customer adoption and available capital.

This story was originally published by TheStreet on Apr 1, 2026, where it first appeared in the Innovation section. Add TheStreet as a Preferred Source by clicking here.