Galaxy Secures $1.4 Billion Funding for Helios Data Center Expansion
Galaxy, a Nasdaq-listed digital asset investment firm, secured $1.4 billion in funding for its Helios data center expansion in West Texas. This funding is part of efforts to enhance computing capacity for artificial intelligence (AI) and high-performance computing (HPC).
- The debt facility covers 80% of construction costs and lasts 36 months.
- Galaxy has already invested $350 million in equity for the project.
- Shares dropped 2.2% in early trading amid broader market declines.
- A lease agreement with CoreWeave commits the company to use all 800 megawatts of approved power capacity at Helios.
- Power delivery to CoreWeave's operations is expected to start in early 2026 under a long-term contract.
- This deal could generate over $1 billion in average annual revenue for Galaxy over 15 years.
- Galaxy is expanding data center operations as U.S. tech firms seek more power and compute resources amid rising AI competition.
- TeraWulf saw a 50% increase after signing a $3.7 billion AI hosting contract with Google.
- Jefferies reports that two-thirds of Galaxy's value may come from its data center business.