What's Happening?
Galaxy Digital, led by Mike Novogratz, has secured a $1.4 billion loan to accelerate the development of its Helios AI datacenter campus in Texas. The loan will cover approximately 80% of the construction costs for the first phase, with Galaxy contributing $350 million in equity. The datacenter will support AI workloads under a long-term agreement with CoreWeave, a GPU cloud provider, starting in 2026. This move reflects a strategic shift by Galaxy Digital to leverage its capital-raising capabilities and infrastructure to meet the growing demand for AI computing power.
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Why It's Important?
The expansion of the Helios AI datacenter signifies a convergence between digital asset infrastructure and AI computing needs. Galaxy Digital's investment in AI highlights a broader trend among crypto-native firms seeking new growth opportunities as institutional capital increasingly flows into AI. The partnership with CoreWeave is expected to generate significant revenue, with Galaxy projecting over $1 billion annually from the deal. This development underscores the potential for digital asset firms to diversify and capitalize on emerging technologies beyond traditional crypto activities.
What's Next?
Galaxy Digital plans to expand the Helios datacenter's power capacity to 3.5 gigawatts at full buildout, with 2.7 gigawatts available for other clients beyond the CoreWeave agreement. The company anticipates substantial revenue growth from its AI initiatives, potentially earning $15 billion over the 15-year term of the CoreWeave contract. As the demand for AI computing power continues to rise, Galaxy Digital may further invest in infrastructure and partnerships to enhance its position in the AI sector.
