Galaxy bets on CoreWeave’s Texas data center: $3.5 billion in debt, with annual interest of $346 million

Author: CryptoSlate

Compiled by: Deep Tide TechFlow

Deep Tide Briefing: Galaxy Digital is financing CoreWeave’s construction of an AI data center in Texas with $3.5 billion, with annual interest as high as $346 million. Repayment of this debt depends entirely on whether delivery can be made on time in 2027—once the construction schedule is delayed, Galaxy will be in a situation where it can only pay interest and cannot repay the principal.

Galaxy Digital has financed $3.5 billion for CoreWeave to build a data center in Texas, at the cost of about $346 million in interest per year.

On July 23, a Galaxy project subsidiary priced and issued the senior secured notes at 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.

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

Principal repayment begins from completion of construction

A 9.875% coupon means $346 million in interest each year, paid in cash every February 1 and August 1 starting in 2027. The first payment covers only part of the annual amount, but Galaxy did not disclose the exact figure.

Principal repayment will follow different schedules. The notes will amortize 4% of the original principal each year, subject to adjustments. Before adjustments, it is $140.28 million per year, paid in two installments per half-year, with the first payment date at least 10 months after project completion.

Interest begins under a fixed schedule, while principal repayment must wait until construction completion and can be adjusted. Creditors will have first-priority recourse claims over substantially all project assets and the equity held by the parent company 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 add about 260 megawatts of critical IT load for the second phase. Galaxy said the terms are broadly similar to the previously announced 15-year, 133-megawatt Phase 1 agreement.

Delivery is now the core operational test. On July 6, Galaxy said Phase 1 was completed on schedule, and delivery of the data halls for Phase 2 is expected to begin in the first half of 2027.

The construction timeline now comes with a clear financial cost. Interest starts in 2027, but principal repayment is deferred until the project is completed—making Galaxy’s delivery timeline the core of its CoreWeave deal and its debt obligations before 2031.