Galaxy Digital plans 74 MW McGregor data center

Galaxy Digital acquired approximately 500 acres in McGregor, Texas, on July 28 for its second major artificial intelligence and high-performance computing data center campus in the state. 

The company plans an initial 74-megawatt phase that could begin receiving power in 2028.

The site sits inside the McGregor Industrial Park and will be developed under an agreement with the City of McGregor. Galaxy is working with the McGregor Economic Development Corporation and Heart of Texas Electric Cooperative on the project.

Galaxy Digital’s McGregor campus starts at 74 MW

Galaxy said the utility has agreed to support construction of interconnection facilities required for the first phase. Operations would ramp after power delivery begins, subject to permitting, construction, utility work and other development milestones.

The company believes the campus has “potential to grow into a multi-hundred-megawatt campus” through 2030 after additional transmission infrastructure is completed. That remains a company projection. Galaxy has not announced an anchor tenant, total construction budget or binding commitment for capacity beyond the initial phase.

The new campus expands Galaxy’s data center business beyond its Helios facility in Dickens County. Chief Executive Mike Novogratz described demand for computing capacity as a “structural shift, not a passing cycle.” The statement reflects management’s outlook rather than a guaranteed demand forecast.

Moreover, Galaxy paid approximately $7.5 million for the land, providing that amount in land-sale revenue to the City of McGregor. The company also agreed to fund and construct a private electrical substation on the campus.

Galaxy will provide financial security required by the utility for related local infrastructure upgrades. The company said this structure is intended to prevent electricity customers from carrying costs created by the development, although future utility and grid expenses will depend on the final project design.

The development agreement is expected to add at least $130 million to the local property tax base. That figure represents the company’s estimate of taxable property value, not $130 million in direct tax payments or revenue for the city.

Galaxy also plans to use closed-loop cooling that recirculates water and to fund additional water infrastructure required by the agreement. The company expects construction to support several hundred trade and construction positions, followed by permanent operational roles. Final hiring numbers have not been disclosed.

The 74 MW phase sits below ERCOT’s large-load threshold

The initial development is one megawatt below the 75 MW threshold that Texas uses to classify large-load customers. Projects at or above that level must meet added interconnection, disclosure and financial requirements under rules introduced to manage rising data center demand.

The Public Utility Commission of Texas approved ERCOT’s Batch Zero process in June. It groups qualifying projects of at least 75 MW into a common study so the grid operator can allocate capacity and identify necessary transmission upgrades.

Galaxy said it will coordinate with its utility before expanding the McGregor campus above 75 MW. The company has not stated whether a later phase has entered Batch Zero or another ERCOT interconnection study.

ERCOT also tracks medium-sized loads between 25 MW and 74.9 MW in its long-term forecasts. The grid operator has cautioned that forecast requests do not show which projects will ultimately secure financing, customers and completed grid connections.

McGregor extends Galaxy’s Helios AI strategy

Galaxy’s first Texas campus, Helios, has more than 1.6 gigawatts of approved power capacity. The company completed Helios Phase I in July, delivering approximately 200 MW of gross power and 133 MW of critical IT capacity to CoreWeave under a 15-year lease.

As crypto.news previously reported, the delivery moved Helios into revenue-generating operations. Phase II is planned to add 260 MW of critical IT capacity, while total contracted capacity across three phases reaches 526 MW.

Galaxy separately priced a $3.507 billion private offering of 9.875% senior secured notes due in 2031. The company said the proceeds would finance part of Helios Phase II, including two buildings with 400 MW of utility capacity and 260 MW of critical IT capacity. That financing is tied to Helios in Dickens County and was not announced as funding for McGregor.

In related coverage, crypto.news examined why Bitcoin mining companies are shifting toward AI data centers. Access to land, power and existing grid infrastructure can shorten development timelines, although AI facilities require different cooling, networking and reliability standards from mining operations.

Power delivery and tenant selection come next

The McGregor project must now move through engineering, permitting, substation construction and utility interconnection work. Galaxy expects the first power in 2028 and possible further expansion through 2030, but both dates remain conditional.

Galaxy has not disclosed whether it will operate the facility itself, lease it to one large customer or divide capacity among several tenants. It also has not announced the expected capital cost, financing structure or revenue associated with the initial 74 MW.

The company is scheduled to report second-quarter results on Aug. 5. That earnings update could provide further information on Helios financing, McGregor development spending and Galaxy’s wider multi-campus strategy, although the company has not promised additional McGregor disclosures during the call.

No verified GLXY price movement could be attributed solely to the McGregor announcement. Investors were also assessing the Helios note offering, construction spending and the company’s upcoming quarterly results.