CoreWeave executes 2nd-phase pact for datacenter expansion

CoreWeave executes 2nd-phase pact for datacenter expansion

CoreWeave Inc. (NASDAQ: CRWV) has taken a significant step forward in its AI cloud infrastructure expansion by executing a second-phase lease agreement with Galaxy Digital Inc. (Nasdaq: GLXY) for the Helios datacenter campus in West Texas [2]. The agreement, announced on August 15, 2025, marks a major milestone in CoreWeave's plans to dominate the AI cloud market.

Under the terms of the lease, CoreWeave will gain access to an additional 260 MW of critical IT load for its AI and high-performance computing (HPC) operations. This follows a previous agreement signed earlier this year, where CoreWeave exercised its final option to access an additional 133 MW of critical IT load. Combined, these agreements commit CoreWeave to the full 800 MW of approved power capacity at the Helios datacenter campus [2].

The $1.4 billion project financing facility secured by Galaxy Digital will fully fund the initial retrofit and expansion of Helios, enabling the delivery of the first phase of power for CoreWeave's AI and HPC operations by early 2026. This financing facility, which was secured at an 80% loan-to-cost ratio, has a 36-month term and is secured by all the assets associated with the first phase of Helios's buildout [2].

Galaxy Digital, a global leader in digital assets and datacenter infrastructure, is excited about this development. "This financing marks a major milestone in our transformation of Helios into a next-generation AI and HPC datacenter campus," said Mike Novogratz, Founder and CEO of Galaxy. "We're on track and excited to deliver the first phase of power to CoreWeave beginning in early 2026" [2].

The expansion of the Helios datacenter campus is part of CoreWeave's broader strategy to secure power and real estate for its AI cloud infrastructure. CoreWeave's ambitious capital expenditure plans, including a $20–$23 billion 2025 capex and a $9 billion acquisition of Core Scientific, aim to meet the growing demand for AI compute and establish a dominant market position [1].

However, CoreWeave's aggressive expansion strategy has not been without its challenges. The company reported a $290.5 million net loss in Q2 2025, driven by capital-intensive expansion and a $25 billion debt raise. Despite this, the company's 207% YoY revenue growth and 74.28% gross margin demonstrate operational efficiency and strong demand for its services [1].

For investors, CoreWeave's share price volatility and the risks associated with its aggressive expansion strategy must be carefully evaluated. While the company's AI infrastructure expansion is undeniably bold, investors must consider whether its capital allocation strategy aligns with long-term value creation or if it's a cautionary tale of overambition in the AI gold rush [1].

References:
[1] https://www.ainvest.com/news/coreweave-ai-infrastructure-expansion-share-price-volatility-strategic-risk-assessment-high-growth-tech-investors-2508/
[2] https://www.marketscreener.com/news/galaxy-closes-1-4-billion-project-financing-facility-to-accelerate-helios-ai-datacenter-development-ce7c51dedd81f421