Galaxy's Helios Campus Hits 1.6GW: Inside Texas's Largest Single-Site Data Center Power Approval
ERCOT's large load interconnection queue has nearly quadrupled to 233GW in a single year, with 70% of requests coming from data centers. Galaxy Digital just secured approval for the largest single-site allocation in that queue: 1.6 gigawatts at its Helios campus in West Texas, with CoreWeave committed to the entire capacity for AI training workloads.
The January 15, 2026 approval marks a watershed moment for data center development in Texas. While the ERCOT grid strains under unprecedented demand growth, Galaxy navigated the Large Load Interconnection Study (LLIS) process to secure power that most developers wait years to obtain. The campus, which began as a cryptocurrency mining operation acquired for $65 million in 2022, has transformed into what Galaxy calls "one of the largest AI datacenter campuses in the world"—with potential to eventually support 3.5GW.
TL;DR
- 1.6GW Approved: Galaxy completed ERCOT interconnection studies for 830MW additional capacity, doubling total approved power at Helios
- CoreWeave Commitment: Full 800MW initial capacity leased under 15-year agreement generating $1B+ average annual revenue
- $1.4B Financing: Project financing facility closed August 2025 to fund Phase I and II construction
- Q1 2026 Delivery: First 133MW tranche targeting delivery in first half of 2026
- 3.5GW Potential: Campus has runway for additional expansion beyond current approvals
- ERCOT Context: Approval comes as grid operator processes 233GW of large load requests, 300% increase year-over-year
- Triple-Net Structure: Galaxy provides shell and power; CoreWeave bears operating costs including electricity price risk
The Helios Campus Journey
Galaxy's Helios campus represents one of the most dramatic pivots in data center history—from cryptocurrency mining casualty to AI infrastructure centerpiece.
Timeline:
| Date | Milestone |
|---|---|
| July 2021 | Ground broken by Argo Blockchain |
| May 2022 | Initial mining operations begin |
| Late 2022 | Galaxy acquires campus for ~$65M during crypto winter |
| 2023 | Power optimization and infrastructure assessment |
| Q2 2024 | Initial 800MW ERCOT approval secured |
| August 2025 | $1.4B project financing facility closed |
| January 2026 | Additional 830MW approved, total reaches 1.6GW |
| H1 2026 | Phase I delivery (133MW) to CoreWeave |
The acquisition price—$65 million for what is now a multi-billion-dollar asset—reflects both the distress in cryptocurrency markets at the time and the optionality value Galaxy recognized in the underlying power infrastructure (Data Center Dynamics).
Location Advantages:
The 160-acre campus sits in Dickens County, West Texas, offering several strategic benefits:
- Proximity to wind generation: West Texas hosts the highest concentration of wind capacity in ERCOT
- Transmission access: Wind Energy Transmission Texas (WETT) provides interconnection
- Land availability: Rural location enables campus expansion without urban constraints
- Favorable pricing: West Texas wholesale prices historically lower due to transmission congestion from generation-rich areas
The CoreWeave Partnership
CoreWeave's commitment to the full 800MW of initially approved capacity transformed Helios from a speculative power play into a contracted AI infrastructure asset.
Agreement Structure:
| Element | Terms |
|---|---|
| Capacity | Full 800MW initial allocation |
| Duration | 15 years |
| Revenue | $1B+ average annually |
| Structure | Triple-net lease |
| Phase I | 133MW, H1 2026 delivery |
| Phase II | Remainder throughout 2027 |
The triple-net lease structure represents an important risk allocation. Galaxy provides the physical shell and power interconnection while CoreWeave bears:
- Electricity costs including price volatility
- Maintenance and operations
- Insurance
- Property taxes
This structure positions Galaxy more as "digital real estate" than as a service provider, with predictable revenue streams regardless of wholesale power price movements (Mint Ventures Research).
CoreWeave's AI Infrastructure Strategy:
CoreWeave has positioned itself as the "AI Hyperscaler," building infrastructure purpose-designed for AI workloads rather than general cloud computing. The company counts among its customers:
- OpenAI
- Mistral AI
- IBM
- Major enterprise AI deployments
The Helios capacity will support what CoreWeave describes as "some of the most compute-intensive AI workloads in the world," including large-scale model training that requires sustained high-power delivery (CoreWeave).
ERCOT Interconnection Context
Galaxy's 1.6GW approval must be understood against the backdrop of ERCOT's unprecedented demand surge.
Large Load Queue Explosion:
| Period | Queue Size | Change |
|---|---|---|
| December 2024 | 63 GW | Baseline |
| September 2025 | 205 GW | +225% |
| December 2025 | 233 GW | +270% |
More than 70% of the large load interconnection requests come from data centers. Many individual requests exceed 1 gigawatt per site—scale that was virtually unheard of five years ago (Utility Dive).
Capacity vs. Reality:
Not all queued capacity will materialize. ERCOT's current process requires developers to demonstrate:
- Completed Large Load Interconnection Study (LLIS)
- Utility service agreement execution
- Transmission provider arrangements
- Financial commitment to construction
Galaxy has completed all four requirements for its 1.6GW allocation. Most queue participants remain in earlier stages, with many speculative requests unlikely to advance (Inside Climate News).
Generation Additions:
To support growing load, ERCOT added approximately 23GW of new generation capacity across 2024-2025, with another 9.9GW targeted for synchronization in H1 2026. The generation interconnection queue totals 432GW, including:
- 176 GW energy storage
- 158 GW solar
- 48 GW gas (nearly doubled from 26GW in October 2024)
Texas Power Market Dynamics
Galaxy's Helios campus sits in a unique position within the Texas power market—benefiting from West Texas generation surplus while facing transmission constraints that create both opportunities and risks.
West Texas Advantages:
| Factor | Benefit |
|---|---|
| Wind density | Highest concentration in ERCOT |
| Solar resources | Abundant insolation |
| Land costs | Fraction of urban alternatives |
| Wholesale prices | Lower due to transmission congestion |
The region's renewable generation has transformed Texas's power mix. Wind and solar now supply up to nearly half of ERCOT's total electricity demand, making the market less reactive to natural gas price fluctuations (EIA).
Curtailment Challenges:
The abundance creates its own problems. Due to insufficient transmission capability, 8 TWh of solar and wind power was curtailed in Texas in 2024. Data centers like Helios that can absorb local generation provide economic value by reducing curtailment while accessing lower-cost power.
Price Volatility:
ERCOT's energy-only market creates significant price volatility. The EIA forecasts the ERCOT-North hub to experience 45% price increases in 2026 due to high summer demand paired with limited supply. For data center operators, this volatility underscores the importance of Galaxy's triple-net structure—CoreWeave bears the price risk, not Galaxy (EIA Analysis).
Financing and Economics
The $1.4 billion project financing facility closed in August 2025 represents one of the largest data center debt raises in U.S. history.
Capital Structure:
| Element | Detail |
|---|---|
| Debt facility | $1.4B project financing |
| Purpose | Phase I and II construction |
| Collateral | Helios campus assets and contracts |
| Revenue backing | CoreWeave 15-year lease |
The financing structure—project-level debt backed by contracted revenue—mirrors the model used in renewable energy development. Lenders gain comfort from the long-term CoreWeave commitment, which provides revenue visibility extending to 2041 (PR Newswire).
Revenue Projections:
Galaxy projects average annual revenue exceeding $1 billion over the 15-year CoreWeave agreement. This transforms the company's economics:
- Predictable infrastructure revenue stream
- Reduced correlation to cryptocurrency markets
- Contracted cash flows supporting additional expansion
- Platform for 3.5GW ultimate buildout
Galaxy's Pivot:
The Helios success has reshaped Galaxy Digital's identity. Originally a cryptocurrency-focused financial services firm, the company now describes itself as "a hybrid of Web3 institutional services provider and AI data center" operator. With CoreWeave occupying Helios, Galaxy has moved its mining operations elsewhere, signing a 48MW contract at Soluna's Project Kati data center in Texas.
ERCOT Process Reform
Galaxy's successful navigation of the LLIS process comes as ERCOT implements significant reforms to handle the demand surge.
Current Challenges:
Corporate stakeholders including Google, Meta, CenterPoint, Amazon, and OpenAI have communicated to ERCOT that uncertainty in the current process creates undue risk for developers. The primary concerns include:
- Unpredictable study timelines
- Sequential rather than parallel processing
- Limited visibility into queue position
- No standardized criteria for approval
Batch Zero Initiative:
ERCOT is developing a new process to evaluate multiple large-load interconnection requests simultaneously. The "Batch Zero" approach will establish:
- Standardized evaluation criteria
- Parallel processing of similar requests
- Clear timeline commitments
- Transparent queue management
SB 6 Implementation:
The Texas Public Utility Commission must implement SB 6 by December 2026, establishing standardized interconnection rules and improved load forecasting. The legislation responds to concerns that ad hoc processes favor sophisticated developers with ERCOT experience while disadvantaging new entrants (KSAT).
Transmission Investment:
Long-term grid expansion requires significant transmission buildout. Oncor has filed for the Longshore Switch–Drill Hole Switch line—a proposed 765-kV line running approximately 180 miles to support the Permian Basin region. If approved, the line would be energized by December 2028, adding backbone capacity that benefits large loads including data centers.
Competitive Landscape
Galaxy's 1.6GW approval positions Helios among the largest data center campuses in North America, but competition for Texas capacity is intensifying.
Major Texas Data Center Developments:
| Project | Developer | Capacity | Status |
|---|---|---|---|
| Helios | Galaxy/CoreWeave | 1.6GW approved, 3.5GW potential | Phase I construction |
| GW Ranch | Pacifico Energy | 7.65GW permitted | Air permit approved |
| SB Energy/OpenAI | OpenAI | 1.2GW | Development announced |
| Multiple sites | Meta | Undisclosed | Active expansion |
The GW Ranch project in Pecos County represents the largest permitted data center campus in the United States at 7.65GW of gas-fired power generation. Its private grid model—using natural gas turbines, solar, and battery storage—enables rapid deployment without impacting the ERCOT grid directly (KCBD).
Texas's Structural Advantages:
Texas is poised to become the largest home for data centers in the country within two years. The state currently hosts approximately 387 data centers, drawn by:
- Cheap natural gas
- Available land
- Regulatory environment favorable to power development
- No state income tax
- Growing renewable capacity
Grid demand from data centers in Texas is expected to exceed 40GW by 2028, according to Bloom Energy projections (Texas Tribune).
Risk Factors
Despite the strong positioning, Galaxy's Helios campus faces several material risks.
Power Delivery Risk:
The 133MW Phase I delivery in H1 2026 remains dependent on:
- Construction completion on schedule
- Utility infrastructure readiness
- ERCOT grid conditions
- Weather and supply chain factors
Any delays could impact CoreWeave's ability to deploy planned AI infrastructure.
ERCOT Market Risk:
While Galaxy's triple-net structure transfers electricity price risk to CoreWeave, broader ERCOT market instability could affect:
- Transmission availability
- Grid reliability during peak demand
- Regulatory responses to capacity concerns
- Future expansion approvals
Technology Evolution:
AI training infrastructure evolves rapidly. While CoreWeave's 15-year commitment provides revenue stability, the company bears the risk that future hardware generations may require different power delivery, cooling, or infrastructure characteristics than Helios was designed to provide.
Competitive Pressure:
The 7.65GW GW Ranch project and other large-scale developments could create oversupply conditions in West Texas, potentially affecting:
- Power pricing dynamics
- Labor availability for construction
- Transmission capacity allocation
- Customer acquisition for future phases
Key Takeaways
-
Landmark Approval: Galaxy's 1.6GW ERCOT approval represents the largest single-site data center power allocation navigating the increasingly congested Texas interconnection process.
-
CoreWeave Validation: The 15-year, $1B+ annual revenue commitment from CoreWeave transforms speculative power assets into contracted infrastructure—a model likely to influence future data center financing.
-
Queue Position Matters: With ERCOT's large load queue approaching 233GW and 70% data center-driven, early movers with completed interconnection studies hold significant competitive advantage.
-
Texas Dominance Accelerating: The state is positioned to become the largest U.S. data center market within two years, with over 40GW of data center demand projected by 2028.
-
Triple-Net Innovation: Galaxy's structure—providing shell and power while tenants bear operating risk—offers a template for infrastructure-focused data center development.
-
Reform Pressure Building: ERCOT's Batch Zero initiative and SB 6 implementation will reshape interconnection processes, potentially benefiting or disadvantaging current queue participants depending on final rules.
-
Transmission Constraint Real: Despite generation additions, 8 TWh of renewable curtailment in 2024 demonstrates that transmission—not generation—may ultimately limit Texas data center growth.
-
3.5GW Runway: Galaxy's potential to expand Helios to 3.5GW provides significant optionality as AI infrastructure demand continues accelerating.
What Introl Is Watching
Data center power development in Texas affects the entire HPC infrastructure ecosystem. At Introl, our field engineering teams track developments that impact high-performance computing deployment across the region.
Near-Term Indicators:
- Galaxy's H1 2026 Phase I delivery execution
- ERCOT Batch Zero criteria announcement
- GW Ranch construction timeline
- SB 6 implementation rulemaking progress
Infrastructure Implications:
- Cooling system requirements for West Texas climate
- Networking infrastructure for remote campus locations
- Workforce availability in non-metro Texas markets
- Supply chain logistics for large-scale deployments
The Texas data center market is entering a new phase where power access—not capital, land, or demand—determines which projects advance. Galaxy's Helios approval demonstrates what successful navigation of that constraint looks like.
For coverage of data center infrastructure developments affecting AI deployment, visit Introl's analysis hub.
