Galaxy Lands $1.4B for AI Data Center Expansion
Galaxy Secures $1.4B to Expand Helios Data Center for AI
Galaxy, a Nasdaq-listed digital asset firm, has obtained $1.4 billion in funding to expand its Helios data center in West Texas. This move aims to significantly increase computing capacity for artificial intelligence (AI) and high-performance computing (HPC).
The project highlights the growing convergence of the crypto industry with AI infrastructure.
Details of the Funding
- The debt facility covers 80% of the construction costs.
- It spans 36 months and supports the site's retrofit and expansion.
- Galaxy has already invested $350 million in equity.
CoreWeave's Commitment
The expansion is underpinned by a lease agreement with AI cloud provider CoreWeave (CRWV), committing to all 800 megawatts of approved power capacity at Helios. The first phase is slated to deliver power to CoreWeave in early 2026 under a long-term contract.
Financial Projections and Market Impact
Galaxy projects the CoreWeave deal could generate over $1 billion in average annual revenue over 15 years.
Galaxy's expansion into data centers reflects the increasing demand for compute resources driven by AI advancements. TeraWulf (WULF), another former Bitcoin miner now focused on HPC, recently saw its stock jump after securing a significant AI hosting deal with Fluidstack and Google.
Analyst Perspective
Jefferies indicated in a July report that Galaxy’s data center business could represent two-thirds of the company's total value.
As companies like Galaxy venture deeper into AI infrastructure, securing these projects becomes crucial. For blockchain projects managing substantial capital, robust security practices are essential. Codeum offers services, including security audits and KYC solutions, to ensure the integrity of blockchain ecosystems and their ventures into emerging technologies.