Galaxy Digital Acquires 500 Acres in Texas for Second AI Data Center Campus

Galaxy Digital has signed a development agreement with the City of McGregor, Texas to build a privately funded AI and high-performance computing data center campus on approximately 500 acres, marking the firm's second major infrastructure investment in the state. The project is projected to generate a minimum of $130 million for McGregor's local tax base.

The McGregor campus extends a geographic bet Galaxy has already placed in Texas, a state that has become a preferred destination for compute-intensive operations due to its relatively low energy costs and business-friendly regulatory posture. The company has been steadily pivoting away from its crypto trading and asset management roots toward owning and operating physical infrastructure, a transition that mirrors moves by other crypto-native firms seeking more durable revenue streams.

GLXY shares have declined roughly 17% around the announcement, a signal that public market investors are not uniformly enthusiastic about the capital allocation. Large-scale data center builds carry long construction timelines, substantial upfront costs, and execution risk, all of which weigh on near-term earnings. Galaxy has not disclosed the full financial terms of the McGregor deal, including total construction cost or expected completion date, leaving analysts without a clear framework for modeling returns.

Galaxy is entering an AI infrastructure market where Microsoft, Google, and Meta are committing hundreds of billions of dollars to similar buildouts. Hyperscaler capital at that scale creates pricing pressure on power purchase agreements, land, and specialized hardware. For a firm of Galaxy's size, winning co-location or wholesale contracts against that backdrop requires either differentiated positioning or a willingness to accept thinner margins. The company has not publicly outlined which customers or contract structures it is targeting for the McGregor site.

Crypto miners have long operated at the intersection of energy procurement and high-density computing, skills that translate directly to running GPU clusters for AI workloads. Several firms have already converted or expanded mining facilities into HPC (high-performance computing) operations, with the transition driven by the higher revenue per megawatt that AI inference and training workloads can command relative to Bitcoin mining. The push by crypto firms into AI infrastructure is itself part of a wider convergence between digital assets and machine intelligence, a trend visible in hardware-level projects like Ledger's hardware-backed agent stack for securing AI crypto transactions.

The $130 million tax base contribution figure, cited in Galaxy's company statement, is the clearest public number attached to the McGregor project. That figure suggests a campus of meaningful scale, though whether it reflects property taxes, utility revenues, or a broader economic impact estimate has not been specified. McGregor, a small city roughly 20 miles southwest of Waco, has previously attracted industrial and aerospace tenants, including SpaceX's test facility, making it a known quantity for large private infrastructure projects.

Galaxy Digital has not provided a construction timeline or a projected operational date for the campus. Until those details emerge, the McGregor announcement reads as a land and agreement secured, with execution still ahead.