Galaxy Digital acquired approximately 500 acres in McGregor, Texas, for its second major AI and high-performance computing data center campus, the company announced Tuesday. The project follows Galaxy's existing Helios facility in West Texas and aims to meet growing demand for AI compute infrastructure. The McGregor campus will begin with an initial 74 MW phase expected to receive power in 2028, with potential expansion to multi-hundred megawatts by 2030. Galaxy stated the privately funded development, including a private substation, is designed to insulate local rate payers from electrical infrastructure costs. The project is expected to add a minimum of $130 million to McGregor's local tax base, according to the company.
Galaxy Digital Plans 74 MW Initial Phase for McGregor Campus
Galaxy Digital developed the McGregor project with the City of McGregor and local partners. The initial 74 MW phase is expected to receive power in 2028. The company stated the campus will be privately funded and include a private substation. "This is intended to insulate rate payers from costs associated with electrical infrastructure required to support the campus development," Galaxy wrote in the announcement.
Galaxy CEO Mike Novogratz stated the company has spent several years proving in Dickens County that a privately funded data center can be a long-term partner to a rural community. "McGregor is the next step in our strategy to build a disciplined, multi-campus data center business," Novogratz said.
Galaxy Pursues $3.5 Billion Debt Raise for Helios Phase II Expansion
Galaxy purchased its bitcoin mining Helios campus in 2022 and has since pivoted toward HPC and AI. Texas' state-authorized power supplier ERCOT recently approved Galaxy's plan to expand Helios to 1.63 GW of capacity, which has been leased by CoreWeave for 15 years.
Last week, mining media reported that Galaxy is planning to raise about $3.5 billion from a debut junk-bond sale to fund Helios' Phase II expansion, supporting CoreWeave's contract. "The demand for compute is a structural shift, not a passing cycle, and we believe the right way to meet it is by building infrastructure that strengthens the communities that host it," Novogratz said.
Core Scientific and Competitors Announce Major AI Infrastructure Contracts
Core Scientific, which has contracted roughly 590 MW of compute for CoreWeave across multiple sites, said Tuesday that AMD will secure more than 500 MW of its capacity beginning in 2027, with room to scale to 2.5 GW.
Also on Tuesday, FT reported that Nvidia has signed leases worth up to $50 billion for Hut 8's 1 GW Beacon Point campus in Texas. The move comes amid a continuing wave of data center development to support the growing AI sector. Nearly every U.S.-based bitcoin miner has begun converting at least some of their existing infrastructure to serve AI clients and investing in new builds and expansions.
Data Center Development Faces Political Scrutiny and Market Volatility
Data centers have become politically controversial, with some critics pointing to the potential for water and noise pollution as well as rising electricity costs for nearby residents. Earlier this month, New York became the first state to pass a temporary data center moratorium prohibiting new construction for one year.
Supporters note data center construction creates construction jobs for the duration of the build and continues to contribute to the local tax base.
GLXY is down over 9% at publication time to $20.63, according to The Block's data, as other mining stocks dip. IREN is down over 6.6%, HUT over 7%, and WULF over 8%, according to The Block's crypto stocks page. Coinbase and bitcoin are both down over 2%.
FAQ
What did Galaxy Digital acquire in McGregor, Texas?
Galaxy Digital acquired approximately 500 acres in McGregor, Texas, to build its second major AI and high-performance computing data center campus. The company announced the acquisition Tuesday and stated the project will begin with an initial 74 MW phase expected to receive power in 2028.
Why is Galaxy Digital building data centers in Texas?
Galaxy Digital stated the data centers are being built to meet growing demand for AI compute infrastructure. CEO Mike Novogratz said the demand for compute is a structural shift, not a passing cycle, and the company believes building infrastructure that strengthens host communities is the right approach.
How much funding is Galaxy Digital raising for its Helios expansion?
Mining media reported last week that Galaxy Digital is planning to raise about $3.5 billion from a debut junk-bond sale to fund Helios' Phase II expansion, supporting a 15-year lease contract with CoreWeave for 1.63 GW of capacity approved by ERCOT.
