January 16, 2026
Finance

Galaxy Digital Enhances Texas Data Center Capacity Following ERCOT Study Completion

Company secures over 1.6 GW power capacity to expand high-performance computing campus

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Summary

Galaxy Digital Inc. has successfully completed its Large Load Interconnection Study with the Electric Reliability Council of Texas (ERCOT), receiving approval for an additional 830 megawatts (MW) of computing power capacity at its Helios data center campus in West Texas. This milestone effectively doubles the site's total authorized power supply, enabling further development for artificial intelligence and high-performance computing services. The firm is also progressing with construction tied to a long-term lease agreement and exploring further energy and land expansion opportunities.

Key Points

Galaxy Digital secured ERCOT approval for an additional 830 MW power capacity at its Helios campus in West Texas, doubling the total approved capacity to over 1.6 gigawatts.
A service agreement was executed with AEP Texas to facilitate the supply of the additional power capacity.
Construction for the first phase of the Helios data center campus is underway, tied to a long-term lease agreement with CoreWeave, with power delivery expected in early 2026.
The company is exploring further power and land expansion opportunities in Texas and elsewhere, aligning with its multi-gigawatt, multi-tenant data center strategy designed to support AI and high-performance computing.

Galaxy Digital Inc. (NASDAQ: GLXY) confirmed on Thursday that it has completed significant regulatory procedures concerning its West Texas data center facility. The company underwent the Large Load Interconnection Study with ERCOT, the regional electric grid operator, and won approval for an added 830 megawatts of electrical load at its Helios campus.

This expansion marks a critical jump in Galaxy Digital's infrastructure capabilities, effectively doubling the power capacity sanctioned by ERCOT and covered under utility contracts. The new approval raises the total available electrical capacity at the Helios campus to more than 1.6 gigawatts.

The increased capacity supports Galaxy Digital's strategic objectives to transform the Helios site into a sprawling multi-gigawatt, multi-tenant data center campus. The planned facility is tailored for artificial intelligence (AI) applications and high-performance computing workloads, sectors that demand substantial and reliable energy resources.

Securing this additional power allotment involved executing a service agreement with AEP Texas, the utility company, to provide the supplementary capacity. Wind Energy Transmission Texas played an instrumental role in facilitating the associated interconnection study process.

Meanwhile, construction activities have commenced for the initial phase of the Helios campus. This phase is linked to a long-term lease agreement with CoreWeave, an enterprise specializing in AI infrastructure. Galaxy Digital anticipates initial delivery of power for this segment by early 2026, signaling the commencement of operational readiness.

Additionally, Galaxy Digital is actively assessing further expansions, both in terms of additional power capacity and land acquisition opportunities within Texas and potentially other regions. These evaluations align with the company's broader vision to scale its data center operations in response to growing demand for advanced computing services.

Industry observers will note that Galaxy Digital’s upcoming fiscal disclosures are scheduled before the open of trading on the Nasdaq and the Toronto Stock Exchange on February 3. The company is expected to report its financial results for the fourth quarter and the full year 2025. Current analyst consensus projects a loss of $0.24 per share and revenues approximating $13.67 billion.

From a market performance standpoint, Galaxy Digital's stock demonstrates notable momentum. It is trading 30.7% above its 20-day simple moving average (SMA) and 9.1% higher than its 100-day SMA, reflecting strong short-term upward movement. Over the trailing year, shares have gained approximately 40.3%, positioning the stock closer to its 52-week high than the low, indicating a robust longer-term trend.

Technical indicators reflect a balanced but positive sentiment. The Relative Strength Index (RSI) stands near 69.7, a level deemed neutral but approaching the threshold for overbought conditions. Concurrently, the Moving Average Convergence Divergence (MACD) remains above its signal line, signifying bullish momentum and suggesting that investor interest may continue to build.

Benzinga Edge rankings classify Galaxy Digital with an 83 out of 100 score for Momentum, underscoring outperformance relative to the broader market. However, the Value score sits at 55.98, suggesting that the stock is trading at a premium compared with industry peers. Analysts characterize this profile as typical of a high-growth stock with strong trends but also heightened valuation risk, recommending cautious risk management such as tight stop-loss orders.

As of the latest data, Galaxy Digital shares are rising, trading around $33.08 per share, up roughly 3.4% on the day. The company continues to expand its data center footprint and power agreements, positioning itself strategically within the growing ecosystem of AI and high-performance computing providers.

Risks
  • Upcoming earnings report projects a per-share loss, which may impact investor sentiment and share price.
  • The stock is trading at a premium relative to peers, indicating elevated valuation risk potentially exposing investors to volatility.
  • Technical indicators suggest the stock is near neutral but approaching potentially overbought levels, which could temper momentum.
  • Expansion plans depend on continued regulatory approvals and successful execution of construction and leasing agreements.
Disclosure
Education only / not financial advice
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