Galaxy Digital Bets Big on AI With 500-Acre Texas Campus as GLXY Shares Slump 17%
Galaxy Digital has acquired approximately 500 acres in McGregor, Texas, for a new artificial intelligence (AI) and high-performance computing (HPC) data center campus. The deal, signed through a development agreement with the City of McGregor, will place the campus within the McGregor Industrial Park. The land sale generated roughly $7.5 million in revenue for the city.
This marks Galaxy Digital’s second major data center investment in Texas, building on its 1.6 gigawatt Helios campus in Dickens County, where the company is already the largest employer and taxpayer. CEO Mike Novogratz described demand for compute power as a structural shift rather than a temporary cycle, stating, “McGregor is the next step in our strategy to build a disciplined, multi-campus data center business.”
Under the initial agreement, Galaxy has secured a utility interconnection and targets 74 megawatts of capacity in phase one. The company plans to coordinate with the local utility to push development past the 75 MW threshold that ERCOT classifies as a large load. Galaxy expects the McGregor site to start receiving power in 2028, with operations expanding thereafter. The campus could eventually grow into a multi-hundred-megawatt facility by 2030, dependent on new transmission infrastructure.
The project will use a closed-loop cooling system, a water-efficient design that recirculates water internally rather than drawing continuously from the local supply—the same system used at Helios.
Financially, Galaxy will fund and build its own private electrical substation to keep infrastructure costs off local ratepayers. The company will carry its full tax obligations immediately, adding an estimated minimum of $130 million to McGregor’s property tax base for schools and emergency services. Construction is expected to support several hundred trade and construction jobs, with permanent operations roles to follow at competitive salaries.
Meanwhile, Galaxy Digital trades on the Nasdaq under ticker GLXY. As of July 27, shares were at $22.70, up slightly on the day but down 7.01% over five days, 17.48% over the past month, and 32.23% over six months. Year to date, shares are off 0.83%, and down 27.73% over the past year. This volatility reflects the stock’s high beta relative to broader crypto sentiment. Galaxy priced roughly $3.5 billion in senior secured notes tied to data center activity earlier this year and is scheduled to report earnings on August 5.
The McGregor deal provides Galaxy a second concrete site in its multi-campus strategy centered on long-term AI compute demand, separate from fluctuations in its share price.