Galaxy Digital Bets Big on AI With 500-Acre Texas Campus as GLXY Shares Slump 17%

The deal, signed through a development agreement with the City of McGregor, will put an artificial intelligence and high-performance computing campus inside the McGregor Industrial Park. The land sale generated approximately $7.5 million in revenue for the city.

Galaxy is building on its 1.6 gigawatt Helios campus in Dickens County, West Texas, where the company says it is already the largest employer and taxpayer.

“McGregor is the next step in our strategy to build a disciplined, multi-campus data center business,” Mike Novogratz, founder and CEO of Galaxy, remarked on Tuesday. He described demand for compute power as a structural shift rather than a temporary cycle.

What Galaxy Has Committed to Building

The company has secured an initial agreement with the local utility to begin construction on interconnection facilities. The first phase of development targets 74 megawatts of capacity.

Galaxy plans to coordinate with the utility to push development past the 75 MW threshold that ERCOT classifies as a large load. The company expects the McGregor site to start receiving power in 2028, with operations expanding after that. Galaxy believes the campus could eventually grow into a multi-hundred-megawatt facility by 2030, depending on new transmission infrastructure.

The project will run on a closed-loop cooling system, the same water-efficient design used at Helios, which recirculates water internally rather than drawing continuously from local supply.

Tax Base and Jobs

Under the agreement, Galaxy will fund and build its own private electrical substation, a step meant to keep infrastructure costs off local ratepayers. The company will also carry its full tax obligations starting immediately, adding an estimated minimum of $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 at what the company calls competitive salaries.

What This Means for GLXY Investors

Galaxy Digital trades on the Nasdaq under the ticker GLXY. As of the July 27 close, shares sat at $22.70, up $0.02 or 0.09% on the day in pre-market sessions.

The stock’s short-term trend has been rough. GLXY is down 7.01% over five days, 17.48% over the past month, and 32.23% over six months. Year to date, shares are off 0.83%, and the stock remains down 27.73% over the past year.

That volatility reflects the stock’s high beta relative to broader crypto sentiment. Galaxy priced roughly $3.5 billion in senior secured notes tied to data center activity earlier this year, and the company reports earnings on August 5.

The McGregor deal gives Galaxy a second concrete site in what the company describes as a multi-campus strategy built around long-term AI compute demand, separate from the swings in its share price.