Galaxy Digital’s £12 Billion Data Centre: The Good and Bad for Investors

Galaxy Digital, the crypto and financial services firm founded by Mike Novogratz, is building one of the largest AI data centres in North America. The Helios campus in Dickens County, West Texas, has an approved capacity of 1.6 gigawatts and a projected total build-out of 3.5 gigawatts — backed by $1.4 billion in project financing. For crypto investors, this is a significant shift in what Galaxy Digital actually is.

What Is the Helios Project?

Helios started life as a Bitcoin mining facility. Galaxy has spent the past two years converting it into an AI-grade data centre campus capable of powering large-scale machine learning workloads. In April 2026, the company delivered its first operational data hall to CoreWeave, an AI cloud infrastructure provider — marking the transition from construction project to revenue-generating business.

The numbers involved are substantial. Galaxy secured a $1.4 billion debt financing facility in 2025 to fund the build-out. More recently, the company closed a $460 million private strategic investment from a major unnamed asset manager, offering further evidence that institutional capital sees the project as credible.

At full buildout, the campus will have 3.5 gigawatts of total power capacity across more than 1,500 acres. CoreWeave has committed to 800 megawatts under a 15-year lease agreement. Galaxy plans to lease the remaining 2.7 gigawatts to additional clients as the project expands.

Why Galaxy Is Making This Move

Galaxy CEO Mike Novogratz has described the convergence of Bitcoin and AI as “the single most important macro trend of 2026.” That framing is not just PR — it reflects a real strategic calculation.

Bitcoin mining profitability has compressed since the April 2024 halving, which cut block rewards from 6.25 BTC to 3.125 BTC. Many miners are now running thinner margins and looking for alternative uses for the power infrastructure they already own. Galaxy’s pivot to AI compute is the most aggressive version of this trend.

AI data centres require enormous, stable power supply — exactly what a former Bitcoin mining facility provides. The grid connections, land, and power purchase agreements already in place at a mining site reduce the time and cost of converting to AI infrastructure. Galaxy is essentially reusing assets it already owns to capture a different, higher-margin revenue stream.

Galaxy expects to generate over £1 billion in average annual revenue from the combined Helios phases at maturity, with lease-level EBITDA margins of approximately 90 per cent.

The Good: What This Means for Investors

For Galaxy Digital shareholders and broader crypto market participants, the Helios project has several genuine positives.

Revenue diversification. Galaxy’s income has historically been volatile — tied to trading revenue, crypto prices, and asset management. A long-term 15-year lease with CoreWeave provides predictable, recurring income independent of Bitcoin price movements. This reduces the risk profile of the company considerably.

Institutional credibility. A $1.4 billion debt facility and a $460 million investment from a major unnamed asset manager are not given to speculative projects. The financing signals that major financial institutions believe Helios will be built and will generate returns. This is meaningful for a firm that still carries a crypto stigma in some institutional circles.

Nasdaq listing adds visibility. Galaxy completed its move to the Nasdaq in 2025 and filed its first annual report as a US-listed company in 2026. UK investors can now access GLXY through standard brokerage accounts with US market access, without the friction of Canadian exchange trading.

AI infrastructure demand is real. Data centre capacity for AI workloads is genuinely constrained. Microsoft, Google, Meta, and Amazon are all racing to build out compute infrastructure, and third-party providers like CoreWeave are filling gaps that hyperscalers cannot serve fast enough. Galaxy is entering this market with real assets already in place.

The Bad: The Risks UK Investors Should Know

The Helios project carries meaningful risks that deserve honest assessment.

Execution risk is high. Building a 3.5-gigawatt data centre campus is an enormous undertaking. The history of large-scale infrastructure projects is littered with cost overruns, grid connection delays, and permitting problems. Galaxy has delivered phase one to CoreWeave, but the remaining build-out spans years and depends on factors outside the company’s control.

The company carries substantial debt. A $1.4 billion project financing facility is not free money — it is debt that must be serviced. If Helios is delayed, if CoreWeave reduces its commitment, or if AI compute demand softens before the campus reaches full capacity, Galaxy’s financial position could deteriorate quickly.

Concentration risk on CoreWeave. The anchor tenant for 800 megawatts of capacity is CoreWeave — a single private company. CoreWeave itself is backed by Nvidia and has raised billions, but it is not publicly listed and its long-term financial position is not fully transparent. If CoreWeave faced difficulties, Galaxy’s revenue projections would need significant revision.

The AI infrastructure boom may not last. Some analysts argue that AI compute demand is currently driven by a build-out phase that will eventually stabilise. If training runs become more efficient — as demonstrated by DeepSeek’s low-cost model training in 2025 — the demand for raw compute may plateau before Galaxy’s full capacity is leased.

It is still a crypto company. Galaxy’s balance sheet includes significant Bitcoin holdings, its trading and asset management divisions remain exposed to crypto market cycles, and the company’s reputation is still tied to the broader digital asset sector. A major crypto market downturn would affect Galaxy’s stock price regardless of Helios performance.

What the ERCOT Approval Means

In June 2026, Galaxy completed ERCOT interconnection studies and secured approval for an additional 830 megawatts at the Helios campus, doubling approved power capacity to over 1.6 gigawatts. ERCOT is the Texas electricity grid operator — its approval is a meaningful technical milestone.

Grid interconnection is one of the primary bottlenecks for data centre development in the US. Projects can spend years in the ERCOT queue before receiving approval. Galaxy clearing this hurdle for an additional 830 megawatts confirms that the expanded campus has a credible path to power, not just plans on paper.

What This Means for UK Investors

Galaxy Digital trades on the Nasdaq under the ticker GLXY. UK investors can access it through brokers offering US market exposure — including Hargreaves Lansdown, AJ Bell, and Interactive Investor. Note that US-listed shares attract 15 per cent withholding tax on dividends for UK investors, though Galaxy currently pays no dividend.

Galaxy is no longer simply a crypto trading firm. If Helios delivers on its projections, the company will derive the majority of its revenue from AI infrastructure by 2027 — making it a different kind of investment case. The Novogratz-era reputation for volatility may give way to a more infrastructure-like business model.

That transition is not guaranteed. The risks outlined above are real. But for investors interested in the intersection of crypto and AI infrastructure, Galaxy Digital is one of the few publicly listed companies building at scale in both sectors simultaneously.

This article is for educational purposes only and does not constitute financial advice. Cryptocurrency and equity investments involve significant risk. Always do your own research.