Galaxy Prices $3.507B Notes for CoreWeave Texas Data Center
Galaxy Digital said on July 23 that its Helios unit priced $3.507 billion of 9.875% senior secured notes due 2031 to finance part of a CoreWeave-leased data-center project in Texas. The coupon implies about $346.3 million in annual interest, while principal amortization begins only after project completion, making delivery timing central to the financing risk.
Galaxy Digital announced on July 23 that its indirect subsidiary, Galaxy Helios Data Centers II, had priced a $3.507 billion private offering of 9.875% senior secured notes due in 2031. The company expects the transaction to close on July 28, subject to market and other conditions.
The proceeds are intended to finance part of Helios Phase II in Dickens County, Texas. Galaxy said the project covers two buildings containing eight data halls on roughly 260 acres, with 400 megawatts of utility capacity and 260 MW of critical IT capacity. CoreWeave is the tenant for the planned AI and high-performance-computing capacity.
The financing cost
At a 9.875% coupon, the $3.507 billion principal produces about $346.3 million in annual interest before fees or other adjustments. Interest is payable twice yearly, beginning February 1, 2027, and the notes mature on August 1, 2031.
Principal follows a different schedule. Galaxy said the notes will amortize at 4% of their original principal each year, subject to adjustment, with the first amortization payment due at least 10 months after the project is completed. That structure makes the construction schedule relevant to when principal repayments begin, while the fixed interest calendar starts in 2027.
The debt is secured by first-priority liens on substantially all assets of the issuer and guarantor, along with the parent-held equity in the issuer. Galaxy's announcement does not say that the liens extend to the company's assets generally.
Why it matters for AI infrastructure
The offering illustrates how large AI data-center commitments translate into long-dated construction and financing obligations. For infrastructure planners, the useful signal is the scale and timing: 260 MW of critical IT capacity requires billions of dollars of project financing well before all tenant capacity is delivered.
Galaxy previously said Phase II data-hall deliveries are expected to begin in the first half of 2027. The newly priced notes do not prove that construction will finish on schedule, but they put a measurable cost on delay. The company also cautioned that the offering remained subject to closing conditions when it issued the announcement.
Key Points
- 1Galaxy Helios Data Centers II priced $3.507 billion of 9.875% senior secured notes due 2031 for part of a CoreWeave-leased Texas project.
- 2The coupon implies about $346.3 million in annual interest, with cash interest payments scheduled to begin in February 2027.
- 3The project targets 400 MW of utility capacity and 260 MW of critical IT load across two buildings and eight data halls.
Scoring Rationale
The financing is a large, disclosed commitment tied to 260 MW of critical AI data-center capacity and gives practitioners a concrete view of capital cost and delivery risk. Its impact is substantial for AI infrastructure planning, though it is a project-finance event rather than a new model or technical capability.
Sources
Primary source and supporting public references used for this report.
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