Key Information
- Galaxy has secured $1.4 billion in funding for the Helios data center expansion in West Texas, which is aimed at enhancing its capabilities in artificial intelligence (AI) and high-performance computing (HPC).
- This financing will cover 80% of construction expenses and comes after a lengthy lease agreement with CoreWeave for 800 megawatts of power capacity.
- The expansion reflects a growing trend among tech companies to secure additional power and computing resources in the wake of increasing competition in the AI sector.
Details
The Nasdaq-listed investment firm reported on Friday that it had finalized a $1.4 billion project financing facility dedicated to augmenting its Helios data center, intended to improve resources for AI and HPC.
The financing, projected to span 36 months, will facilitate both retrofitting and expansion efforts at the site, alongside an initial $350 million injection of equity from Galaxy.
Note: In early trading, the share price dropped by 2.2%, impacted by a wider market correction.
The agreement with CoreWeave indicates a commitment to utilize the entire available 800 megawatts of power at Helios, with initial power deliveries slated for early 2026. Novogratz noted the partnership is expected to yield over $1 billion in annual revenue on average across the next 15 years.
As Galaxy continues its pivot from traditional cryptocurrency trading to substantial data center operations, the firm seeks to capitalize on the demand for power and computing resources stemming from intensified AI rivalry. Earlier this week, TeraWulf surged over 50% following a $3.7 billion AI hosting agreement with Fluidstack and Google, acquiring an 8% ownership stake in the latter.
