Galaxy Digital is expanding its artificial intelligence and high-performance computing infrastructure with the acquisition of approximately 500 acres in McGregor, Texas, where the company plans to develop its second AI and HPC data center campus in the state. Located in Central Texas near Waco, McGregor adds a new geographic anchor to Galaxy's footprint alongside its Helios data center in Dickens County, West Texas. The move represents a continued push to diversify beyond bitcoin mining.

The project is being undertaken with support from the City of McGregor and other partners. According to the company, initial construction will begin with a 74-megawatt capacity, which is expected to be operational by 2028. The campus could ultimately scale into a multi-hundred-megawatt facility by 2030.

Privately Funded Development Model

Galaxy Digital stated that the entire project will be fully privately financed, including the construction of a dedicated substation. The company emphasized that this approach is intended to ensure the cost of required infrastructure is not passed on to local electricity consumers—a notable contrast to some large-scale data center projects where transmission and substation upgrades have drawn scrutiny over who bears the cost.

The company also projected significant economic benefits for McGregor, estimating that the campus will generate at least $130 million in additional tax revenue for the city.

Galaxy Digital CEO Mike Novogratz said the company has already demonstrated the value of privately funded data centers through its Helios project.

Big day for @galaxyhq !!! We executed a development agreement and acquired 500 acres in McGregor, Texas, for the construction and operation of an AI and HPC data center campus. It's our second major data center investment in the state, building on our 1.6 GW Helios flagship… — Mike Novogratz (@novogratz) July 28, 2026

"Over the last few years, we've proven in Dickens County that a privately-funded data center can be a true, long-term partner for a rural community," Novogratz said. He described the McGregor campus as the next step in the company's strategic roadmap.

Broader AI Demand Accelerates Data Center Buildout

The expansion comes amid surging demand for AI computing power across the United States. A growing number of bitcoin mining companies have begun redirecting portions of their operations toward AI and HPC services while simultaneously expanding capacity. The pivot is driven in part by overlapping infrastructure requirements: mining sites already possess access to large-scale power, cooling systems, and grid connections that can be repurposed for AI workloads, which typically command higher revenue per megawatt than crypto mining.

Galaxy Digital initiated the conversion of its Helios campus for AI and HPC use after acquiring the facility in 2022. ERCOT has since approved the expansion of Helios to 1.63 GW, and the site has been leased to CoreWeave under a 15-year agreement. Galaxy was reported to be raising $3.5 billion through a junk bond issuance to fund the second phase of Helios and to meet the growing demands of CoreWeave.

Novogratz characterized the rising demand for computing infrastructure as a long-term opportunity rather than a temporary trend, adding that the company intends to develop projects that are community-friendly.

Competitive Landscape in AI Infrastructure

Galaxy is not alone in capitalizing on the AI infrastructure boom. On the same day as the McGregor announcement, Core Scientific disclosed that AMD will receive over 500 MW of computing power starting in 2027, with potential expansion to 2.5 GW. Separately, it was reported that Nvidia will lease up to $50 billion worth of facilities at Hut 8's 1 GW Beacon Point campus in Texas. Texas has emerged as a focal point for such projects, partly due to its competitive deregulated electricity market under ERCOT and the availability of land with existing industrial power infrastructure.

Galaxy Digital Shares Decline Amid Broader Crypto Market Pullback

Despite the growth announcements, Galaxy Digital shares fell more than 9% to $20.63 during the trading session. Other crypto mining stocks also experienced declines, with IREN dropping over 6.6%, Hut 8 falling more than 7%, and TeraWulf declining over 8%.

The broader cryptocurrency market also pulled back, with both Coinbase stock and Bitcoin trading more than 2% lower.