Galaxy Bets US$346 Million to Build CoreWeave’s Massive AI Data Center in Texas
Galaxy Digital is set to shoulder approximately US$346.3 million in annual interest payments to finance the construction of CoreWeave’s AI data center in Texas. The company secured US$3.507 billion through the issuance of 9.875% senior secured notes.
Galaxy’s project subsidiary priced the notes on July 23, with the transaction expected to close on July 28. The notes are scheduled to mature on August 1, 2031.
The proceeds will fund part of the construction of two buildings housing eight data halls at the Helios campus in Texas. The facility is designed to support 400 megawatts (MW) of utility power and 260 MW of critical IT capacity. A portion of the proceeds will also be allocated to debt-service reserves.
With a 9.875% coupon, Galaxy is expected to pay approximately US$346.3 million in interest annually. Interest payments will be made in cash every February 1 and August 1, beginning in 2027. However, the first payment will cover only a partial interest period, and the exact amount has not been disclosed.
Principal repayments, meanwhile, will not begin until construction is complete. Galaxy will repay approximately 4% of the original principal each year, or about US$140.28 million annually, before any adjustments. These repayments will be made in semiannual installments, starting no earlier than 10 months after the project is completed.
This financing structure means interest payments begin on a fixed schedule, while principal repayments are deferred until the data center is operational. As a result, completing the project on time will be critical for Galaxy to meet its debt obligations.
As collateral, lenders will hold first-priority claims over nearly all project assets, including Galaxy Helios Data Centers II LLC, the project guarantor, and the parent company’s equity stake in the issuer. However, the security package does not extend to Galaxy Digital’s broader corporate assets.
On the operational side, CoreWeave committed in April 2025 to approximately 260 MW of additional critical IT capacity for Phase II of the project. Galaxy said the agreement is substantially similar to its previously announced 15-year, 133 MW Phase I contract.
On July 6, Galaxy announced that Phase I had been completed on schedule, while deliveries of Phase II data halls are expected to begin in the first half of 2027.
For Galaxy Digital, the project represents a strategic expansion into AI infrastructure beyond its core digital asset business. However, the sizable annual interest burden makes timely project completion essential to ensuring the company can meet its debt obligations through the notes’ maturity in 2031.
