Galaxy Digital said Wednesday that its data center subsidiary plans to offer $3.507 billion of senior secured notes due 2031 in a private offering to help finance an artificial-intelligence data center project in Texas leased to AI cloud-computing company CoreWeave.
The company said the Galaxy Helios Data Centers II intends to use the net proceeds to fund part of the development and construction of two buildings housing eight data halls on a roughly 260-acre site in Dickens County, Texas, as well as debt service reserves, according to a filing with the Securities and Exchange Commission.
The project, known as Helios Phase II, has $10.4 billion in minimum contracted lease payments over a 15-year initial lease term, with CoreWeave committed to 260 megawatts of critical IT load, according to investor materials.
The planned campus is expected to have 400 megawatts of utility capacity and 260 megawatts of critical IT capacity, Galaxy said.
Galaxy said Helios Phase II is expected to begin generating rent in the second quarter of 2027 and have a 13.7% starting monthly recurring revenue yield on cost. The lease includes annual rent escalators of between 3% and 5%, depending on inflation.
The financing is part of Galaxy's expansion into AI and high-performance computing infrastructure. The company said the broader Helios campus has 1.63 gigawatts of approved electrical capacity and 800 megawatts of leased capacity, all contracted with CoreWeave.
Galaxy previously secured a $1.4 billion project financing facility in 2025 to support the initial development of Helios, which the company has said could eventually support up to 3.5 gigawatts of power capacity.
The notes will be offered to qualified institutional buyers under Rule 144A and certain non-U.S. investors under Regulation S, subject to market conditions and other factors. Galaxy said there is no assurance the offering will be completed on the proposed terms or at all.
Write to Anvee Bhutani at anvee.bhutani@wsj.com
(END) Dow Jones Newswires
July 22, 2026 11:52 ET (15:52 GMT)
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