Galaxy Bets on CoreWeave Texas Data Center: $3.5 Billion Debt, Annual Interest Reaches $346 Million

Author: CryptoSlate

Compiled by: TechFlow

TechFlow Editor's Note: Galaxy Digital financed $3.5 billion for CoreWeave to build an AI data center in Texas, with annual interest reaching up to $346 million. The repayment of this debt depends entirely on whether delivery can be made on time in 2027—once construction is delayed, Galaxy will fall into a dilemma of paying only interest while being unable to repay the principal.

Galaxy Digital financed $3.5 billion for building a data center for CoreWeave in Texas, at the cost of approximately $346 million in interest annually.

On July 23, Galaxy's project subsidiary priced the issuance of these senior secured notes with an annual interest rate of 9.875%. The transaction is expected to close on July 28, and the notes will mature on August 1, 2031.

This financing will be used to cover part of the construction of eight data halls across two buildings at the Helios campus. The facility is planned to provide 400 megawatts of utility capacity and 260 megawatts of critical IT capacity, with some funds also allocated for debt service reserves.

Principal Repayment Starts Upon Completion of Construction

The 9.875% coupon rate means $346 million in interest annually, payable in cash on February 1 and August 1 of each year starting from 2027. The first payment covers only part of the year, but Galaxy did not disclose the exact amount.

Principal repayment follows a different schedule. The notes amortize at 4% of the original principal annually, adjustable. Before adjustment, it is $140.28 million annually, paid in semi-annual installments, with the first payment date at least 10 months after project completion.

Interest begins on a fixed schedule, while principal repayment waits until after construction is completed and is adjustable. Creditors will hold a first priority claim on almost all project assets as well as the parent company's equity in the issuer.

The disclosed liens cover Galaxy Helios Data Centers II LLC, its project guarantors, and the issuer equity held by the parent company. They do not extend to Galaxy Digital's general assets.

In April 2025, CoreWeave committed to adding approximately 260 megawatts of critical IT load for Phase II. Galaxy stated that the terms are basically similar to the previously announced 15-year, 133-megawatt Phase I agreement.

Delivery has now become a core operational test. On July 6, Galaxy stated that Phase I was completed on time, and Phase II data hall delivery is expected to begin in the first half of 2027.

The construction timeline now has a clear financial cost. Interest starts from 2027, but principal repayment must wait until project completion, making Galaxy's delivery timeline central to its CoreWeave deal and debt obligations before 2031.