Galaxy projects its data center leasing business will hit an annualized run rate of between $800 million and $850 million by the end of 2027.
The segment posted $69 million in adjusted EBITDA, according to its third-quarter earnings report published Tuesday. That's a 527% jump from the $11 million in the second quarter.
It was also the first full quarter of rental income from its Helios I campus in Texas, which is currently leased by AI cloud provider CoreWeave. Helios I now pulls in about $80 million in quarterly revenue, CEO Mike Novogratz said on Tuesday's earnings call. Meanwhile, the second phase is already financed, under construction, with deliveries expected to begin in the second quarter of 2027.
Novogratz revealed that Galaxy had been in "advanced discussions" with a potential client looking to lease Helios II in the summer but "ultimately decided not to move forward on the terms being considered."
He said power availability constraints and higher demand for capacity from 2028 onward have made Helios II "an even more valuable asset today than it was just a few months ago."
"These are large, long-term agreements, and we're not going to compromise on terms just to meet an announcement date," Novogratz said.
Galaxy is now back to early talks with prospective hyperscaler tenants that want to lease Helios II's 830 megawatts of approved power capacity. The site is expected to come online in mid-2028 at the earliest.