Galaxy Digital (GLXY) shares fell 8.08% to $20.86 after the company announced plans for a new artificial intelligence and high-performance computing campus in Texas. The project includes the acquisition of about 500 acres in McGregor, McLennan County, for a second major data center investment. The development expands Galaxy’s long-term infrastructure strategy beyond its existing Helios campus in West Texas.

Galaxy Digital Expands Texas AI Infrastructure

Galaxy Digital acquired approximately 500 acres in McGregor under a development agreement with the City of McGregor. The site will support a new artificial intelligence and high-performance computing data center campus, marking the company’s second major data center investment in Texas.

The campus will operate inside McGregor Industrial Park through partnerships with the McGregor Economic Development Corporation and Heart of Texas Electric Cooperative. Galaxy’s land purchase generated about $7.5 million in revenue for the city. The agreement also supports future infrastructure development across the industrial area.

Galaxy plans an initial development phase with 74 megawatts of capacity. The company expects the campus to receive power in 2028 after the required infrastructure is completed. It also aims to expand the site into a multi-hundred-megawatt campus by 2030 after additional transmission upgrades.

The company will construct a private electrical substation to support the campus and will provide financial security for required utility infrastructure upgrades under the development agreement. Galaxy said the structure is designed to avoid shifting infrastructure costs to local electricity customers, a point that has become increasingly important as large data center projects draw scrutiny over grid strain and public utility impacts.

Galaxy also plans to use a closed-loop cooling system similar to the one at its Helios campus. The design recirculates water internally and limits overall water consumption. In addition, the company committed to funding extra water infrastructure required for the project.

The development agreement includes long-term tax and employment commitments. Galaxy expects the campus to add at least $130 million to McGregor’s property tax base. Construction is expected to support several hundred jobs before permanent operational positions become available.

Helios Campus Provides a Base for Growth

Galaxy entered the Texas data center market after acquiring the Helios campus in Dickens County in 2022. Since then, the company has transformed the facility into one of North America’s largest AI and high-performance computing campuses. The site now has more than 1.6 gigawatts of ERCOT-approved power capacity.

The Helios campus also reflects Galaxy’s shift beyond bitcoin mining infrastructure. The company secured a long-term lease with CoreWeave after expanding the site’s approved capacity to approximately 1.63 gigawatts. Helios has become a key asset in Galaxy’s broader data center business.

Recent reports also indicated that Galaxy plans to raise approximately $3.5 billion through a high-yield bond offering. The funding would support the second phase of Helios expansion under the CoreWeave agreement. The McGregor campus extends Galaxy’s multi-campus strategy across Texas.

The broader market continues to expand data center capacity to meet demand for artificial intelligence computing. Several bitcoin mining companies have converted existing facilities into AI and high-performance computing operations, while others continue building new campuses in major power markets.

Core Scientific said AMD will secure more than 500 megawatts of computing capacity beginning in 2027. The agreement also includes expansion potential to about 2.5 gigawatts over time. Separately, reports indicated Nvidia signed leases worth up to $50 billion for Hut 8’s Beacon Point campus in Texas.

Data Center Expansion Faces Community Scrutiny

Large-scale data center development continues to create economic opportunities while also generating public debate. Supporters point to construction employment, permanent jobs, and stronger local tax revenue. Communities also benefit from the infrastructure investments tied to these projects.

Critics, however, continue to raise concerns about electricity demand, water consumption, and noise. Some groups also question the impact of large facilities on nearby residents. These concerns have influenced policy discussions across several states, even as companies seek regions with available power, land, and utility partners.

Earlier this month, New York approved a temporary one-year moratorium on new data center construction, making it the first state to pause new developments while broader impacts are reviewed. Even so, companies continue advancing projects in regions with available power capacity.

Galaxy said its McGregor project follows the same community-focused approach used at Helios. Previous investments included broadband improvements, public safety support, workforce development, and local recreation initiatives. The company expects the new campus to follow a similar long-term operating model.

The McGregor development strengthens Galaxy’s position in the growing AI infrastructure market while expanding its presence beyond cryptocurrency-related operations. Galaxy continues to pursue a multi-campus strategy centered on high-performance computing and artificial intelligence infrastructure.