Galaxy Digital shares fell 8.08% to $20.86 after the company unveiled plans for a large artificial intelligence and high-performance computing facility in Texas. The project calls for the acquisition of roughly 500 acres in McGregor, in McLennan County, and marks the company’s second major data center venture. The expansion extends Galaxy’s infrastructure beyond its existing Helios facility in West Texas, highlighting how the company is building out a longer-term power and land footprint to support AI workloads.

McGregor Campus to Anchor a Major Texas AI Buildout

Galaxy Digital said it secured about 500 acres in McGregor through a development partnership with the city. The site will be used for an advanced AI and high-performance computing data center complex. The project is the company’s second significant Texas-based data center commitment.

The campus will operate in McGregor Industrial Park through arrangements with the McGregor Economic Development Corporation and Heart of Texas Electric Cooperative. The land deal generated about $7.5 million in municipal revenue and also supports upcoming infrastructure upgrades across the industrial area.

Galaxy’s initial plan calls for 74 megawatts of operational capacity. The company expects power to reach the campus by 2028, after required infrastructure work is completed. Galaxy also intends to expand the site into a multi-hundred-megawatt operation through 2030 once additional transmission upgrades are in place.

As part of the development, Galaxy will build a dedicated electrical substation for the campus. The company also committed to financially guaranteeing the utility infrastructure improvements outlined in the agreement, a structure intended to prevent those costs from being passed on to local electricity customers.

Galaxy said it will use a closed-loop cooling system similar to the one at Helios. That setup recirculates water within the system to reduce overall water usage. The company also pledged to pay for any additional water infrastructure required by the project.

The agreement includes tax and employment commitments as well. Galaxy projects the facility will generate at least $130 million in property tax revenue for McGregor. Construction is expected to create several hundred temporary jobs before permanent operating positions are added.

Helios Offers a Template for Expansion

Galaxy entered the Texas data center market with its Helios campus acquisition in Dickens County in 2022. Since then, the company has developed the site into one of the largest AI and high-performance computing installations in North America. Helios currently has more than 1.6 gigawatts of ERCOT-sanctioned power allocation.

The Helios facility also reflects Galaxy’s shift away from bitcoin mining. After the site’s authorized capacity was expanded to about 1.63 gigawatts, the company negotiated an extended lease arrangement with CoreWeave. Helios has since become a central asset in Galaxy’s growing data center portfolio.

Recent industry reports suggested Galaxy may seek about $3.5 billion through a high-yield bond offering to help fund Helios’s second expansion phase tied to the CoreWeave partnership. The McGregor campus continues that multi-site Texas strategy.

Demand for data center infrastructure has accelerated alongside AI computing needs. Several bitcoin mining companies have repurposed existing facilities for AI and high-performance computing use, while others are building new campuses in regions with ample power supply, where access to electricity and transmission capacity has become a key part of project planning.

Core Scientific recently said AMD will use more than 500 megawatts of computing infrastructure starting in 2027, with potential expansion to about 2.5 gigawatts over time. Separately, reports said Nvidia signed leases worth as much as $50 billion for Hut 8’s Beacon Point Texas campus.

Broader Debate Over Data Center Growth Continues

Large data center developments continue to draw both support and criticism. Backers point to construction jobs, longer-term employment, municipal tax revenue, and infrastructure investment. Critics, meanwhile, raise concerns about electricity demand, water use, and noise.

Those concerns have begun to shape policy discussions in several jurisdictions. Earlier this month, New York enacted a one-year temporary ban on additional data center development, becoming the first state to pause new projects while it examines broader impacts. Despite that move, companies continue pursuing projects in areas with sufficient power resources.

Galaxy said the McGregor project follows the same community-focused approach it used at Helios. The company cited previous contributions that included broadband improvements, public safety support, workforce training programs, and local recreational projects. Galaxy said it expects the new campus to operate under a similar long-term framework.

The McGregor facility strengthens Galaxy’s position in the expanding AI infrastructure market while further diversifying the company beyond cryptocurrency-related operations. The company continues to pursue a multi-site strategy centered on high-performance computing and artificial intelligence infrastructure.