Galaxy Digital (NASDAQ: GLXY) is building a huge data center in Texas, according to CEO Michael Novogratz. The news drove Galaxy shares dramatically higher yesterday by over 20%. The company’s market cap is around $12 billion, with some pegging the data center’s value at around $15 billion. Others foresee a $30 billion valuation.
The update came via a podcast, where Novogratz shared news of the 1.6-gigawatt operation.
The Helios Data Center Campus was previously a Bitcoin mining facility but is being repurposed for artificial intelligence. While this news was revealed several months ago, Novograttz’s declaration helped spur buyers in the hot AI market.
Reports claim that Helios will become the largest AI data center, at least for the time being. Novogratz predicted the capacity will be fully leased within a few months, as soon as July 4th.
The massive energy needed to operate an AI data center has been a point of debate in the US. Some policymakers are looking to curtail development due to fears that it will drive consumer energy prices higher. The US currently does not generate enough energy to operate anticipated data centers, creating higher energy demand. Some companies aware of this enigma are pursuing their own energy projects to maintain competitive viability.
Galaxy was founded in 2018 as a digital asset platform. The shift to AI is strategic and may boost the company’s prospects as AI development and investment continue at a rapid pace.