In a bold move to ramp up its capabilities in the rapidly evolving world of artificial intelligence (AI) and high-performance computing (HPC), Galaxy Digital has successfully secured a hefty $1.4 billion in funding. This new debt facility—announced last Friday—aims to finance the expansion of the Helios data center located in West Texas. The expansion, which is expected to elevate Galaxy’s standing in the tech world, is part of a larger strategy to meet the surging demand for computing power.
A New Era for Helios
The Helios data center, already a significant player in the data infrastructure landscape, is set to undergo a substantial transformation. Galaxy’s CEO, Mike Novogratz, underscored the deal’s potential when he revealed that the first phase would commence in early 2026. CoreWeave, an AI cloud provider, has entered into a lease agreement that will see all 800 megawatts of the approved power capacity dedicated to its operations. This collaboration promises to be lucrative, with Galaxy projecting over $1 billion in average annual revenue over the next 15 years.
The funding, which spans 36 months and covers 80% of the construction costs, is crucial for this ambitious undertaking. Galaxy has also committed $350 million in equity, showcasing its confidence in the project’s potential. Interestingly, this investment comes at a time when markets have shown signs of volatility—Galaxy’s shares dipped by 2.2% amid a broader market pullback. This mirrors recent strategic moves in the industry, such as the Winklevoss twins expanding Trump family ties with Bitcoin mining deal.
Market Shifts and Strategic Moves
The developments at Galaxy reflect a broader shift in the tech industry, where the race for AI supremacy has led to intensified competition for resources. The likes of TeraWulf, a company that transitioned from Bitcoin mining to HPC, illustrate this trend. TeraWulf experienced a dramatic 50% surge in its stock after signing a $3.7 billion AI hosting contract with Fluidstack and Google, even securing an 8% stake for the tech giant. Similarly, Trump Jr.-tied firm raises $50M for crypto, mining as Bitcoin peaks, highlighting the growing interest in crypto and AI ventures.
Analysts are keenly watching these moves. According to a Jefferies report from July, a significant portion of Galaxy’s value—around two-thirds—may soon derive from its burgeoning data center business. This points to a strategic pivot, potentially redefining Galaxy’s role in the tech landscape beyond its traditional crypto trading and asset management roots.
The Road Ahead
As the tech sector grapples with the insatiable demand for computing resources, questions arise about the sustainability of such rapid expansions. While Galaxy’s Helios project is poised to harness the AI boom, the volatile nature of tech markets—coupled with regulatory uncertainties—could pose challenges. Furthermore, the long-term implications for energy consumption and environmental impact remain topics of debate within the industry.
The coming years will be pivotal. As Galaxy and others in the sector navigate these uncharted waters, the outcomes of such massive investments will undoubtedly shape the future of AI infrastructure. Will Galaxy’s gamble on Helios pay off? Only time will tell. For now, the world watches as the digital and physical realms of tech intertwine like never before.
Source
This article is based on: Galaxy Secures $1.4B to Expand Helios Data Center for AI and HPC
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
