Galaxy Digital made a bold move by acquiring 500 acres in McGregor, Texas, aiming to build a sprawling AI and high-performance computing campus. The twist? Their shares dropped nearly 17% over the past month even as they invest heavily in infrastructure expansion.
Building the Future of Compute Power in Texas
The newly acquired land sits in McGregor Industrial Park, where Galaxy plans to establish a massive data center focused on artificial intelligence workloads and high-performance computing. Phase one targets 74 megawatts of power, with ambitions to scale well beyond that by 2030 depending on transmission upgrades. The campus will follow the company's eco-conscious approach, using a closed-loop cooling system that recycles water internally, the same technology applied at their 1.6 gigawatt Helios campus in Dickens County.
Economic Impact and Infrastructure Commitments
Galaxy’s deal involved a development agreement with the City of McGregor, generating $7.5 million upfront for the municipality. This project is expected to add at least $130 million to the local tax base, benefiting schools and emergency services. To avoid burdening local ratepayers, the company will build its own electrical substation and assumes full tax responsibilities right away. CEO Mike Novogratz emphasizes this is a strategic, long-term shift responding to structural demand for compute power rather than a passing cycle.
The McGregor campus is slated to start receiving power in 2028, with Galaxy coordinating closely with the utility to surpass ERCOT’s 75 MW threshold for large loads. This follows the company's established presence in Texas, where their Helios campus is already the largest employer and taxpayer in Dickens County.
material is for informational purposes only and does not constitute financial advice
