Galaxy Digital buys 500 acres in Texas for an AI campus, starting with 74 MW. The $3.5B junk bond sale funds expansion. Competing with IREN and Hut 8 for AI tenants.
Galaxy Digital purchased 500 acres in McGregor, Texas, to develop a high-performance computing and artificial intelligence campus. The site will start with 74 megawatts of capacity, with power delivery scheduled for 2028.
The development agreement with the city generated $7.5 million. Galaxy will fund its own electrical substation to avoid passing costs to residents. The project will contribute at least $130 million to the local tax base and use a closed-loop cooling system.
This is the firm's second major Texas campus, joining the 1.6-gigawatt Helios facility. Galaxy expects to expand the McGregor site to hundreds of megawatts by 2030.
Galaxy shares fell 17.48% in the past month. Crypto market volatility weighed on the stock. The infrastructure push signals a bet on structural AI compute demand, a shift that has drawn crypto-linked firms into the data center race.
Galaxy is competing with IREN Ltd and Hut 8 Corp for AI tenants in Texas. IREN secured a $2.8 billion cloud-services agreement. Hut 8 signed a $9.8 billion lease for 352 megawatts. Galaxy's funding strategy includes a planned $3.5 billion junk bond sale, as reported by Bloomberg. The bond sale details emerged earlier this month.
AlphaScala data shows IREN carries an Alpha Score of 28 (Weak) and Hut 8 scores 62 (Moderate). Galaxy's financial results are due August 5, when the company will update progress on the McGregor project.
The city of McGregor approved the development agreement in June. Construction will begin after the substation is built, likely in 2026.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.