Galaxy Digital stock dropped after unveiling a 500-acre Texas AI campus expansion.
McGregor project starts with 74 MW and targets larger capacity by 2030.
Galaxy will build a private substation and fund local utility infrastructure.
The project is expected to add at least $130 million to the local tax base.
New campus expands Galaxy’s AI infrastructure beyond the Helios data center.
Galaxy Digital (GLXY) shares fell 8.08% to $20.86 after the company announced plans for a new artificial intelligence and high-performance computing campus in Texas. The project includes the purchase of about 500 acres in McGregor, McLennan County, for a second major data center investment. The development expands Galaxy’s long-term infrastructure strategy beyond its existing Helios campus in West Texas.
Galaxy Digital acquired approximately 500 acres in McGregor under a development agreement with the City of McGregor. The site will support a new artificial intelligence and high-performance computing data center campus. The project marks the company’s second major data center investment in Texas.
The campus will operate inside McGregor Industrial Park through partnerships with the McGregor Economic Development Corporation and Heart of Texas Electric Cooperative. Meanwhile, Galaxy’s land purchase generated about $7.5 million in revenue for the city. The agreement also supports future infrastructure development across the industrial area.
Galaxy plans an initial development phase with 74 megawatts of capacity. The company expects the campus to receive power during 2028 after completing required infrastructure. Furthermore, Galaxy aims to expand the site into a multi-hundred-megawatt campus through 2030 after additional transmission upgrades.
The company will construct a private electrical substation to support the campus. Galaxy will also provide financial security for required utility infrastructure upgrades under the development agreement. Consequently, the company expects the project to avoid shifting infrastructure costs to local electricity customers.
Galaxy also plans to use a closed-loop cooling system similar to its Helios campus. The design recirculates water internally and limits overall water consumption. Additionally, the company committed to funding extra water infrastructure required for the project.
The development agreement also includes long-term tax and employment commitments. Galaxy expects the campus to add at least $130 million to McGregor’s property tax base. Construction will support several hundred jobs before permanent operational positions become available.
Galaxy entered the Texas data center market after acquiring the Helios campus in Dickens County during 2022. Since then, the company has transformed the facility into one of North America’s largest AI and high-performance computing campuses. The site now holds more than 1.6 gigawatts of ERCOT-approved power capacity.
The Helios campus also supports Galaxy’s transition beyond bitcoin mining infrastructure. The company secured a long-term lease with CoreWeave after expanding the site’s approved capacity to approximately 1.63 gigawatts. As a result, Helios became a key asset within Galaxy’s broader data center business.
Recent reports also indicated Galaxy plans to raise approximately $3.5 billion through a high-yield bond offering. The funding would support the second phase of Helios expansion under the CoreWeave agreement. Meanwhile, the McGregor campus extends Galaxy’s multi-campus strategy across Texas.
The broader market continues expanding data center capacity to meet artificial intelligence computing demand. Several bitcoin mining companies have converted existing facilities into AI and high-performance computing operations. Companies also continue building new campuses across major power markets.
Core Scientific announced that AMD will secure more than 500 megawatts of computing capacity beginning in 2027. The agreement also includes expansion potential to approximately 2.5 gigawatts over time. Separately, reports indicated Nvidia signed leases worth up to $50 billion for Hut 8’s Beacon Point campus in Texas.
Large-scale data center development continues generating economic opportunities alongside public debate. Supporters point to construction employment, permanent jobs, and stronger local tax revenue. Communities also benefit from new infrastructure investments tied to these projects.
However, critics continue raising concerns about electricity demand, water consumption, and noise. Some groups also question the effect of large facilities on nearby residents. These concerns have influenced policy discussions across several states.
Earlier this month, New York approved a temporary one-year moratorium on new data center construction. The measure made the state the first to pause new developments while reviewing broader impacts. Even so, companies continue advancing projects across other regions with available power capacity.
Galaxy stated that its McGregor project follows the same community-focused approach used at Helios. Previous investments included broadband improvements, public safety support, workforce development, and local recreation initiatives. The company expects the new campus to follow a similar long-term operating model.
The McGregor development strengthens Galaxy’s position within the growing AI infrastructure market. At the same time, the project expands the company’s presence beyond cryptocurrency-related operations. Galaxy now continues executing a multi-campus strategy centered on high-performance computing and artificial intelligence infrastructure.
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