Key Takeaways
- Galaxy Digital has secured $1.4 billion in project financing to expand its Helios data centre, transitioning from crypto mining to AI and high-performance computing.
- The long-term CoreWeave lease spans 15 years and 526MW, with anticipated annual revenues exceeding $1 billion and EBITDA margins of approximately 90%.
- The expansion follows a phased deployment strategy, reducing risk and aligning with escalating AI compute demand.
- Texas offers favourable conditions for AI infrastructure buildouts, with deregulated power markets and rising electricity allocations to data centres.
- Valuations suggest the Helios facility alone could surpass $13 billion in asset value based on industry EBITDA multiples.
In the rapidly evolving landscape of artificial intelligence infrastructure, Galaxy Digital’s latest financing and partnership moves underscore the immense revenue potential in repurposing data centres for AI workloads. The firm’s recent closure of a $1.4 billion non-recourse project financing facility to expand its Helios data centre in Texas highlights a strategic pivot from cryptocurrency mining to high-performance computing, with projected annual revenues exceeding $1 billion from long-term leases. This development not only reflects the surging demand for GPU-intensive facilities but also illustrates how former crypto players are capitalising on the AI boom, potentially achieving EBITDA margins around 90% through efficient, low-overhead operations.
The Helios Expansion: A Bet on AI’s Power Hunger
Galaxy Digital, a firm historically rooted in digital assets, has secured substantial funding to retrofit and scale its Helios facility, transforming it into a hub for AI and high-performance computing (HPC). The $1.4 billion facility, comprising debt and equity components, is earmarked for accelerating development, with a focus on accommodating massive IT loads required by AI cloud providers. This move comes amid a broader industry trend where data centre operators are racing to meet the exponential power demands of generative AI models, which rely on vast arrays of graphics processing units (GPUs).
At the heart of this expansion is a 15-year agreement with CoreWeave, an AI hyperscaler specialising in GPU cloud computing. The contract involves phased commitments to critical IT loads, starting with an initial 133MW phase supported by approximately 200MW of gross power. Subsequent phases include 260MW and an additional 133MW, culminating in around 526MW of contracted capacity by 2028. Such long-term leases provide Galaxy with predictable revenue streams, insulating it from the volatility that plagued its crypto-mining past.
Analysts project that this partnership could generate over $1 billion in annual revenue for Galaxy once fully operational, driven by the premium pricing of AI-optimised infrastructure. With anticipated EBITDA margins hovering at 90%, the economics appear compelling—margins bolstered by minimal ongoing operational costs after initial capex, efficient power utilisation, and the high-value nature of AI tenancy. This margin profile contrasts sharply with traditional data centres, where colocation services might yield 40–60% margins, highlighting AI’s transformative impact on the sector.
Phased Rollout and Risk Mitigation
The structured phasing of the CoreWeave deal mitigates development risks while allowing for scalable growth. Phase I, already underway with the recent financing, targets 133MW of critical IT load, setting the foundation for rapid deployment. Phases II and III, exercised options for 260MW and 133MW respectively, extend the timeline to 2028, aligning with forecasts for AI compute demand to double every six months, as per models from firms like McKinsey and OpenAI.
- Phase I: 133MW critical IT load on ~200MW gross power, financed via the $1.4 billion facility to fast-track construction.
- Phase II: 260MW addition, building on initial infrastructure for seamless integration.
- Phase III: Final 133MW, bringing total contracted load to ~526MW, with potential for further expansion to 800MW if options are fully realised.
This phased approach not only spreads capital expenditure but also allows Galaxy to adapt to evolving technology, such as next-generation GPUs from Nvidia, which CoreWeave heavily utilises. Historical data from similar conversions, like those in Texas energy markets, show that retrofitting mining sites for AI can reduce setup times by up to 50% compared to greenfield projects, per reports from Data Center Dynamics dated 2024.
Market Context: AI Infrastructure’s Gold Rush
The Galaxy-CoreWeave pact is emblematic of a wider frenzy in AI infrastructure investment. Global data centre capex is expected to surpass $500 billion by 2028, according to analyst models from IDC, fuelled by the need for hyperscale facilities capable of handling petabyte-scale AI training. CoreWeave itself reported Q2 2025 revenues of $1.21 billion, a 207% year-on-year surge, underscoring the demand for specialised GPU clouds.
In Texas, where Helios is located, abundant energy resources and deregulated markets make it a prime spot for such builds. The state’s grid, managed by ERCOT, has seen AI-related power requests skyrocket, with projections indicating that data centres could consume 20% of Texas’ electricity by 2030. Galaxy’s non-recourse financing structure—isolating project debt from the parent company—mirrors strategies used in renewable energy projects, reducing overall risk while attracting institutional lenders eager for AI exposure.
Comparatively, peers like Core Scientific have inked similar deals, with enterprise values reflecting premiums for AI pivots. Analyst sentiment, as reported by Nasdaq in mid-2025, remains bullish on such transitions, citing contracted backlogs as key valuation drivers. For Galaxy, the $30.1 billion revenue backlog implied in related AI infrastructure deals suggests a robust pipeline, potentially valuing the Helios project alone at multiples of its capex.
Financial Implications and Valuation Angles
From a valuation perspective, the projected $1 billion annual revenue at 90% EBITDA margins translates to roughly $900 million in annual EBITDA, assuming steady-state operations post-2028. Applying a conservative 15x EBITDA multiple—aligned with high-growth data centre REITs like Equinix—could imply an asset value exceeding $13 billion for the Helios complex. This doesn’t account for upside from expansions beyond the initial 526MW, where total capacity could reach 800MW, potentially boosting revenues proportionally.
| Phase | Critical IT Load (MW) | Timeline | Projected Revenue Contribution |
|---|---|---|---|
| Phase I | 133 | Immediate | ~20-25% of total |
| Phase II | 260 | Mid-term | ~45-50% of total |
| Phase III | 133 | By 2028 | ~20-25% of total |
| Total Contracted | 526 | 2028 | >$1B annual |
These figures, based on analyst models and historical leasing rates (e.g., $2–3 million per MW/year for AI loads, as seen in 2024–2025 contracts), position Galaxy as a high-margin beneficiary of the AI wave. However, risks linger: power price volatility in Texas could erode margins, and competition from hyperscalers like Amazon Web Services might pressure pricing. Still, the 15-year term provides a moat, with break-even likely within 3–5 years post-ramp-up.
Broader Implications for Investors
For investors eyeing the intersection of crypto and AI, Galaxy’s Helios play offers a lens into undervalued assets amid market rotations. While crypto volatility persists, the stability of AI contracts could re-rate such firms, with sentiment from sources like CoinDesk noting “strong buy” ratings for AI-pivoting miners as of August 2025. Dryly put, if AI is the new gold rush, facilities like Helios are the picks and shovels—profitable regardless of who strikes it rich.
In summary, this financing and contracting milestone signals a maturing AI infrastructure market, where scale and speed dictate winners. Galaxy’s projected revenues and margins could set benchmarks, encouraging further capital inflows into the sector.
References
- CoinDesk. (2025, August 15). Galaxy secures USD1.4B to expand Helios data centre for AI and HPC. https://www.coindesk.com/business/2025/08/15/galaxy-secures-usd1-4b-to-expand-helios-data-center-for-ai-and-hpc
- Data Center Dynamics. (2024). Galaxy Digital pivots from crypto to AI, signs 200MW deal with CoreWeave. https://www.datacenterdynamics.com/en/news/galaxy-digital-pivots-from-crypto-to-ai-signs-200mw-deal-with-coreweave/
- Investors.CoreWeave.com. (2025). CoreWeave reports strong first quarter 2025 results. https://investors.coreweave.com/news/news-details/2025/CoreWeave-Reports-Strong-First-Quarter-2025-Results/
- Data Center Dynamics. (2025). CoreWeave leases another 260MW capacity from Galaxy in Texas. https://www.datacenterdynamics.com/en/news/coreweave-leases-another-260mw-capacity-from-galaxy-in-texas/
- Wikipedia. CoreWeave. https://en.wikipedia.org/wiki/CoreWeave
- Yahoo Finance. Galaxy secures $1.4B to expand Helios data centre. https://finance.yahoo.com/news/galaxy-secures-1-4b-expand-134318652.html
- Stock Titan. Galaxy closes $1.4 billion project financing facility to accelerate Helios build. https://stocktitan.net/news/GLXY/galaxy-closes-1-4-billion-project-financing-facility-to-accelerate-m1g6nrtnwvpm.html
- Converge Digest. CoreWeave Q2 capex hits record $2.9B as AI data centre buildout accelerates. https://convergedigest.com/coreweave-q2-capex-hits-record-2-9b-as-ai-data-center-buildout-accelerates
- Nasdaq. CoreWeave reports record Q2 revenue. https://nasdaq.com/articles/coreweave-reports-record-q2-revenue
- InfoTechLead. CoreWeave Q2 2025 revenue surges 207% to $1.21B on AI cloud demand and major contracts. https://infotechlead.com/networking/coreweave-q2-2025-revenue-surges-207-to-1-21-bn-on-ai-cloud-demand-and-major-contracts-90696
- The Block. Galaxy closes $1.4B debt facility to retrofit Helios bitcoin mining centre for CoreWeave AI deal. https://www.theblock.co/post/367127/galaxy-closes-1-4-billion-debt-facility-to-retrofit-its-helios-bitcoin-mining-center-for-coreweave-ai-deal
- WheresYourEd.at. Core Incompetency. https://www.wheresyoured.at/core-incompetency/
- AInvest. CoreWeave: Volatile path, buyout uncertainty, AI infrastructure growth. https://www.ainvest.com/news/coreweave-volatile-path-buyout-uncertainty-ai-infrastructure-growth-2508/
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