Galaxy mentioned on July 28 that it has acquired roughly 500 acres of land in McGregor, McLennan County, Texas, underneath a improvement settlement with the Metropolis of McGregor, to construct and function a knowledge middle campus serving synthetic intelligence and high-performance computing within the McGregor Industrial Park.
This marks Galaxy’s second main information middle funding in Texas, following its Helios campus in West Texas. The venture reveals that the corporate is increasing additional into AI infrastructure, amid quickly rising compute demand and intensifying competitors amongst information middle builders for land, energy, and deployment velocity.
Galaxy is increasing its information middle footprint. We have executed a improvement settlement and bought 500 acres in McGregor, Texas, for the development and operation of an AI and HPC information middle campus.
Galaxy is advancing the electricalinfrastructure required to help the… pic.twitter.com/FD7l5q8Bb7
— Galaxy (@galaxyhq) July 28, 2026
The McGregor Campus
The McGregor campus is designed as a multi-phase improvement, beginning with 74 MW and with potential for vital enlargement as soon as extra transmission infrastructure is accomplished. Galaxy mentioned the venture is being developed with the McGregor Financial Growth Company and Coronary heart of Texas Electrical Cooperative, with which the corporate has signed service agreements to help required interconnection objects.
The primary part is anticipated to start receiving energy in 2028. If infrastructure timelines progress as deliberate, Galaxy expects the 500-acre website might increase to a multi-hundred-megawatt scale by 2030, transferring McGregor from an preliminary 74 MW part into the larger-scale information middle asset class inside the firm’s portfolio.
Galaxy acknowledged the campus will probably be privately funded, whereas committing to constructing its personal substation on the website and offering monetary assurances as required by the electrical utility for associated upgrades. For AI information middle tasks, energy, interconnection, and commissioning objects typically decide operational velocity simply as a lot as bodily facility building.
This method can be meant to mitigate price impacts on native electrical energy customers. Based on Galaxy, its non-public infrastructure funding and monetary assurances are designed to stop the price of serving the campus from being handed on to regional ratepayers.
Affect on McGregor
The five hundred-acre land acquisition brings roughly $7.5 million in land sale income to the Metropolis of McGregor. Galaxy additionally estimates that the venture will add no less than $130 million to the native actual property tax base.
Throughout the building part, the venture is anticipated to create jobs for a number of hundred building staff and engineering companions. As soon as operational, the campus would require a everlasting group to handle information middle operations, preserve energy infrastructure, cooling, safety, and bodily services.
Galaxy acknowledged the McGregor campus will make the most of a closed-loop cooling system, much like Helios, to recirculate water internally and scale back water utilization in comparison with water-intensive cooling fashions. The corporate additionally mentioned it can fund extra water infrastructure objects underneath the event settlement.
For McGregor, key indicators within the coming years will probably be precise tax revenues, long-term jobs, water utilization, and the progress of accompanying infrastructure upgrades.
Galaxy’s AI Infrastructure Push
Galaxy is historically higher identified within the digital belongings sector, however lately has pushed aggressively into AI/HPC infrastructure, significantly by means of Helios in Dickens County, West Texas. The corporate acquired Helios in 2022 and transformed the campus from a facility tied to bitcoin mining right into a large-scale AI/HPC campus.
Helios presently has over 1.6 GW of ERCOT-approved energy capability and holds a long-term lease settlement with CoreWeave, one of many distinguished AI cloud corporations available in the market. On July 6, Galaxy introduced it had accomplished Part I at Helios, handing over 133 MW of important IT load to CoreWeave.
Galaxy additionally introduced the pricing of a $3.507 billion providing of senior secured notes to partially fund Helios II, consisting of two buildings with eight information halls in Dickens County. This capital elevate highlights the dimensions of capital required for Galaxy to increase its information middle phase alongside its digital belongings enterprise.
The addition of McGregor expands Galaxy’s footprint in Texas past Helios, the anchor asset of the corporate’s information middle enterprise. If executed in response to plan, the brand new campus will convey Galaxy nearer to a multi-site AI/HPC infrastructure mannequin, slightly than counting on a single campus.
Execution Dangers
Galaxy famous that many venture milestones stay topic to improvement circumstances, together with allowing, regulatory approvals, building progress, energy interconnection, commissioning, regulatory modifications, and AI/HPC market circumstances.
For McGregor, the timeline to energise the primary part in 2028 would be the most important milestone. If interconnection or transmission infrastructure is delayed, the campus’s ramp-up timeline may be affected. That is an industry-wide danger for information facilities, as energy demand for AI grows quicker than grid enlargement and electrical gear provide chains.
Compute demand may fluctuate based mostly on funding cycles of hyperscalers, AI clouds, and know-how enterprises. Galaxy frames this demand as a structural shift, however multi-hundred-megawatt tasks nonetheless require long-term contracts, secure tenants, and affordable capital prices to realize monetary effectivity.
What Comes Subsequent
Within the coming interval, Galaxy might want to full allowing, interconnection, and personal substation building steps earlier than the McGregor campus can obtain energy. The corporate expects the primary part to start receiving energy in 2028, adopted by expansions based mostly on the progress of extra transmission upgrades.
If this progress is maintained, McGregor will mark Galaxy’s subsequent main enlargement step following Helios. The venture can even exhibit how successfully the corporate can flip its multi-site AI/HPC information middle technique right into a large-scale enterprise phase.
