Galaxy Digital bought 500 acres in McGregor, Texas for a 74 MW data center campus, power expected in 2028. It also closed a $3.5B note for Helios.
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Galaxy Digital closed on about 500 acres in McGregor, Texas, on July 28 for a second artificial intelligence and high-performance computing data center campus in the state. The company plans an initial 74-megawatt phase that could start 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. The utility has agreed to support construction of interconnection facilities required for the first phase, Galaxy said. Operations would ramp after power delivery begins, subject to permitting, construction, utility work and other milestones.
Galaxy paid about $7.5 million for the land, providing that amount in land-sale revenue to the city. 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 structure is intended to prevent electricity customers from carrying costs created by the development, the company said. 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 initial 74 MW 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.
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 about 200 MW of gross power and 133 MW of critical IT capacity to CoreWeave under a 15-year lease. As crypto.news 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.
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.
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. Both dates remain conditional. The company 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.
Galaxy is scheduled to report second-quarter results on Aug. 5. The company has not said whether it will disclose additional McGregor details during the call.
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