Galaxy Digital announced a bold expansion plan, acquiring 500 acres in McGregor, Texas, to build a sprawling artificial intelligence and high-performance computing campus. This project marks the company’s second major data center investment in the state, broadening its footprint beyond the existing Helios campus in West Texas.
The initial phase of the new McGregor campus will deliver 74 megawatts of capacity, with operations expected to kick off by 2028 once infrastructure is in place. Galaxy aims to scale the site significantly, targeting a multi-hundred-megawatt capacity by 2030 through further grid upgrades and transmission enhancements.
To support this growth, Galaxy plans to construct a private electrical substation and will finance necessary utility improvements, ensuring local electricity customers won’t bear infrastructure costs. The development agreement also includes commitments to fund water infrastructure, utilizing a closed-loop cooling system that recirculates water internally to minimize consumption, mirroring the Helios campus design.
The city's coffers have already benefited, with Galaxy’s land purchase generating approximately $7.5 million in revenue for McGregor. Long-term tax and employment commitments are part of the package, potentially adding over $130 million to the local tax base and boosting economic development in McLennan County. Partnerships with the McGregor Economic Development Corporation and Heart of Texas Electric Cooperative will facilitate the campus’s integration within McGregor Industrial Park.
However, Galaxy Digital's stock reacted negatively to the announcement, falling over 8% to $20.86. Investors may be weighing the capital-intensive nature of the project against future growth prospects. This move ties into broader industry trends where data center expansions support the growing demand for AI capabilities and high-performance computing. For context, companies like Moonshot AI are actively seeking more advanced chips to power next-generation AI models, reflecting the sector's rapid evolution.
This material is for informational purposes only and does not constitute financial advice.
