Galaxy Digital's AI-Driven Data-Center Expansion and Its Implications for a 30% Stock Upside

Galaxy Digital (GLXY) has emerged as a pivotal player in the AI and high-performance computing (HPC) infrastructure race, leveraging its strategic pivot from cryptocurrency mining to AI-ready data centers. The company's Helios AI data center campus in West Texas, backed by $1.4 billion in project financing and a $460 million capital raise, positions it to capitalize on the surging demand for compute power. With analysts projecting a 70% stock upside, this article examines the strategic growth catalysts and technical market readiness underpinning Galaxy's transformation-and why a 30% near-term upside is not only plausible but increasingly probable.

Strategic Growth Catalysts: Financing, Partnerships, and Scalability

Galaxy's Helios project is anchored by robust capital allocation and long-term partnerships. The $1.4 billion project financing facility and October 2025 $460 million raise are earmarked to retrofit the former bitcoin mining site into an 800 MW AI/HPC hub, with plans to expand to 3.5 GW of gross capacity. This scalability is critical, as the campus is already securing multi-decade commitments. CoreWeave, a key tenant, has exercised its final 133 MW option, locking in the full 800 MW currently approved. Additionally, a second-phase lease agreement grants access to an additional 260 MW of critical IT load, ensuring a stable revenue stream over a 15-year term.

Galaxy's strategic location in Texas further amplifies its advantages. The state's ERCOT grid is projected to see a 24 GW increase in data center demand by 2031, and Galaxy's existing infrastructure-originally built for bitcoin mining-provides a cost-efficient foundation for high-density AI workloads. The company's acquisition of adjacent land and a 1 GW load interconnection request underscores its intent to dominate the Texas AI infrastructure market.

Technical Market Readiness: AI/HPC Demand and Infrastructure Trends

The technical readiness of the AI/HPC market is a critical enabler for Galaxy's growth. U.S. data center power consumption is projected to triple by 2028, driven by AI's insatiable demand for compute. Texas alone is expected to add 24 GW of data center capacity by 2031, aligning with Galaxy's 3.5 GW expansion roadmap. Meanwhile, global data center infrastructure spending is forecast to surpass $1 trillion by 2030, with AI-driven capital expenditures dominating the sector.

Galaxy's infrastructure is also aligned with industry trends. The Helios campus is designed for AI-specific workloads, incorporating scalable power and cooling solutions. As hyperscalers like Microsoft and Oracle adopt liquid cooling to manage high-density AI operations, Galaxy's proximity to Texas's energy grid and its ability to integrate on-site power generation (e.g., natural gas engines) position it to meet these evolving needs. Oracle's recent Texas AI campus, which includes 400,000 NVIDIA GB200 GPUs, further validates the region's appeal for AI infrastructure.

Financial Turnaround and Analyst Optimism

Galaxy's financials reflect its strategic shift. After a Q1 2025 net loss of $295 million, the company posted a Q2 net income of $30.7 million, driven by asset appreciation and strong performance in its Digital Assets segment. The Helios campus is expected to generate leasing revenue by mid-2026, providing a recurring income stream that could stabilize earnings.

Analyst sentiment is overwhelmingly bullish. The average 12-month price target of $43.78 implies a 70% upside from the current $25.58 price, but a 30% near-term upside is achievable as Phase I operationalizes and long-term leases lock in. This optimism is justified by Galaxy's unique positioning: it combines AI-ready infrastructure, a pre-vetted tenant (CoreWeave), and a scalable power model in a market where "bring-your-own-power" strategies are becoming the norm according to industry analysis.

Conclusion: A Compelling Investment Thesis

Galaxy Digital's Helios expansion is a masterclass in strategic alignment with macro trends. By securing long-term financing, locking in industry-leading tenants, and leveraging Texas's energy advantages, the company is poised to capture a significant share of the $200B+ AI data center market by 2030 according to market projections. With technical readiness accelerating and financials showing a clear turnaround, a 30% stock upside is not just a possibility-it's a near-certainty as the AI infrastructure boom gains momentum.