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- Galaxy Digital secures $1.4B to expand Helios AI facility.
- CoreWeave signs 15-year lease for massive AI operations.
- Helios datacenter expansion could reach 3.5 gigawatts capacity.
Galaxy Digital has secured $1.4 billion in debt financing to expand and retrofit its Helios datacenter in West Texas. According to the company, they will restructure the massive facility from focusing only on crypto mining to supporting artificial intelligence and high-performance computing operations.
They arranged the financing on 36-month terms and secured it with the assets from the first phase of construction. Deutsche Bank was appointed as the first lender, and Galaxy invested an additional $350 million in equity to speed up the location’s buildout.
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Galaxy Secures CoreWeave as Long-Term Tenant
CoreWeave will occupy Helios as a sole tenant of AI and HPC workloads based on a long-term lease of 15 years. The cloud computing company, which has raised $1.5 billion in its IPO, will consume up to 800 megawatts of IT load at the facility.
Galaxy Digital’s CEO, Mike Novogratz, referred to the project as a turning point in the company’s transformation out of crypto markets. Galaxy believes the lease deal could generate over $1 billion annually when the location operates at full capacity.
In 2022, it purchased a facility in West Texas formerly owned by Argo Blockchain after its owner fell on hard financial times and sold it to the company at a cost of $100 million. This acquisition gave Galaxy a solid base to build one of the biggest U.S. datacenters, reflecting a trend among mining operators moving into AI infrastructure.
Expansion Plans Already Underway
A second development stage is already in progress, with Galaxy having signed another lease deal with CoreWeave. In case of full expansion, Helios will have a capacity of 3.5 gigawatts and will be one of the largest data centers in the world dedicated to AI.
CoreWeave’s history is representative of the industry. It began as a crypto miner, but in 2019, it shifted to providing cloud services using GPUs. That shift put it in a position to satisfy the increasing demand for artificial intelligence workloads that necessitate massive GPU resources.
The financing of Galaxy Digital, worth $1.4 billion, indicates a strategic change. Helios project offers CoreWeave stable long-term revenue and decreases its dependence on volatile crypto markets. The relocation puts Galaxy in the heart of the expanding AI infrastructure war in the United States.
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