Galaxy Digital Marks Milestone: Galaxy Cake Data Center Expansion Approved by Texas Grid Operator

Galaxy Digital has achieved a significant infrastructure milestone with regulatory approval to expand power capacity at its Texas data center facility. The development sends a bullish signal to the market, with shares climbing on the news amid broader sector volatility. This approval represents a crucial step in the company’s vision to establish itself as a cornerstone of AI and computing infrastructure in the United States.

830 Megawatts of New Capacity Gets the Green Light

The Texas Electric Reliability Council (ERCOT) has authorized Galaxy Digital to add 830 megawatts of power capacity at its Helios data center campus located in West Texas. The approval follows completion of the mandatory large-load interconnection study and brings the site’s total authorized load capacity to over 1.6 gigawatts—more than doubling the previous threshold.

This expansion represents Galaxy Digital’s largest infrastructure push to date. The company collaborated with AEP Texas and Wind Energy Transmission Texas to navigate the interconnection process, demonstrating the coordination required for such massive power infrastructure projects. Galaxy Digital has also secured a service agreement with CoreWeave, a leading provider of AI compute resources, to accelerate development of the facility’s first construction phase.

Building Toward AI and HPC Infrastructure

Galaxy Digital’s initiative reflects the accelerating demand for high-performance computing resources dedicated to artificial intelligence applications. Mike Novogratz, CEO of Galaxy Digital, emphasized that the power demand for AI compute workloads in Texas has reached unprecedented levels. The regulatory approval positions the company to capitalize on this growing demand and scale operations accordingly.

The Helios campus is designed to support advanced computing clusters and AI training infrastructure. Construction on the facility’s initial phase is progressing on schedule, with power delivery anticipated to commence in the coming weeks. This timeline positions Galaxy Digital to capture market opportunities as enterprises increasingly seek reliable data center resources tailored for computational workload demands.

Market Recognition and the Broader Opportunity

The stock market responded positively to the expansion news, with Galaxy Digital shares advancing in an otherwise challenging trading environment for the broader cryptocurrency and digital asset sector. The approval underscores investor confidence in the company’s infrastructure strategy and its ability to execute on long-term capital allocation plans.

CEO Novogratz signaled that this Texas approval is not an endpoint but rather a foundation for further growth. Galaxy Digital is actively evaluating additional land and power capacity options throughout Texas and exploring comparable opportunities in other states. The galaxy cake of opportunities continues to expand as regulatory and market conditions favor large-scale AI computing infrastructure development.

The advancement of Galaxy Digital’s data center portfolio highlights a broader industry trend: infrastructure-oriented businesses within the crypto ecosystem are attracting institutional capital as tangible asset plays rather than purely speculative bets.