Galaxy Digital has signed a development agreement with the City of McGregor to acquire about 500 acres in the McGregor Industrial Park for a new artificial intelligence and high-performance computing campus. The purchase marks the company’s second major data center investment in Texas and generated roughly $7.5 million in revenue for the city.
The planned site extends Galaxy’s broader push into data center infrastructure. The company is already developing its 1.6 gigawatt Helios campus in Dickens County, West Texas, which it says has made it the area’s largest employer and taxpayer.
A second Texas campus
Galaxy founder and chief executive Mike Novogratz described the McGregor project as the next step in building what he called a disciplined, multi-campus data center business. He said the company views demand for computing power as a structural change rather than a short-lived cycle.
The new campus is intended for AI and high-performance computing workloads and would give Galaxy another physical site in Texas as it expands beyond its Helios operation.
Initial buildout targets 74 megawatts
According to the company, it has already secured an initial agreement with the local utility to begin constructing interconnection facilities. The first phase is designed around 74 megawatts of capacity.
Galaxy said it plans to work with the utility to move development beyond the 75 MW level that ERCOT treats as a large load. The McGregor site is expected to begin receiving power in 2028, and the company said the campus could later expand into a multi-hundred-megawatt facility by 2030 if new transmission infrastructure is added.
Local tax base, infrastructure and jobs
Under the development agreement, Galaxy will build and pay for its own private electrical substation, a structure intended to avoid passing infrastructure costs on to local ratepayers. The company will also assume its full tax obligations immediately.
Galaxy said the project is expected to add at least $130 million to McGregor’s property tax base for schools and emergency services. Construction is projected to create several hundred trade and construction jobs, with permanent operations roles expected afterward at what the company described as competitive salaries.
The campus will use a closed-loop cooling system, the same water-efficient design Galaxy says it uses at Helios. That setup recirculates water internally instead of continuously drawing from local supplies.
Market backdrop and what comes next
Galaxy Digital trades on Nasdaq under the ticker GLXY. As of the July 27 close, the shares were about $22.70, down 17% over the previous month, while the stock had also declined over five days and six months.
Earlier this year, the company priced about $3.5 billion in senior secured notes tied to its data center business. Galaxy is scheduled to report earnings on August 5. For the McGregor project itself, the next confirmed steps are utility interconnection work and preparation for a first phase that the company expects to be powered in 2028.
Source: news.bitcoin.com