Galaxy Digital buys 500-acre Texas AI campus; GLXY down 17%

Galaxy Digital purchased roughly 500 acres in McGregor, Texas through a development agreement with the city to build an artificial intelligence and high-performance computing data center campus inside McGregor Industrial Park. The land sale generated about $7.5 million in revenue for the city.

The company has an initial utility agreement to begin construction on interconnection facilities and is targeting 74 megawatts of capacity in the first phase. Galaxy plans to coordinate with the local utility to expand beyond the 75 MW threshold that the Electric Reliability Council of Texas classifies as a large load.

Galaxy expects the McGregor site to begin receiving power in 2028, with operations scaling up afterward. The company projects the campus could grow into a multi-hundred-megawatt facility by 2030 if new transmission infrastructure becomes available.

The campus will use a closed-loop cooling system that recirculates water internally, the same water-efficient design the company uses at its 1.6-gigawatt Helios campus in Dickens County. Galaxy reports it is the largest employer and taxpayer in that county.

Under the agreement Galaxy will fund and build a private electrical substation to keep infrastructure costs off local ratepayers and will begin paying full property taxes immediately. The company estimates that will add at least $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.

Founder and CEO Mike Novogratz commented, “McGregor is the next step in our strategy to build a disciplined, multi-campus data center business.” He added demand for compute power represents a structural shift rather than a temporary cycle.

Galaxy has been raising capital for its data center expansion and earlier this year priced roughly $3.5 billion in senior secured notes tied to data center activity. The company is scheduled to report earnings on Aug. 5.

On July 27 GLXY closed at $22.70. The stock fell 7.01% over five days, 17.48% over the past month and 32.23% over six months. Year to date the shares are down 0.83% and they are off 27.73% over the past year.