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 an information 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 challenge exhibits 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 pace.
Galaxy is increasing its information middle footprint. We have executed a improvement settlement and purchased 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 assist 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 important growth as soon as further transmission infrastructure is accomplished. Galaxy mentioned the challenge 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 assist required interconnection objects.
The primary part is predicted to start receiving energy in 2028. If infrastructure timelines progress as deliberate, Galaxy expects the 500-acre website might broaden to a multi-hundred-megawatt scale by 2030, transferring McGregor from an preliminary 74 MW part into the larger-scale information middle asset class throughout the firm’s portfolio.
Galaxy said the campus will likely 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 initiatives, energy, interconnection, and commissioning objects usually decide operational pace simply as a lot as bodily facility building.
This method can also be supposed to mitigate price impacts on native electrical energy customers. In accordance with 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 challenge will add a minimum of $130 million to the native actual property tax base.
Through the building part, the challenge is predicted 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 amenities.
Galaxy said the McGregor campus will make the most of a closed-loop cooling system, much like Helios, to recirculate water internally and cut back water utilization in comparison with water-intensive cooling fashions. The corporate additionally mentioned it would fund further water infrastructure objects underneath the event settlement.
For McGregor, key indicators within the coming years will likely 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 recognized within the digital property sector, however in recent times has pushed aggressively into AI/HPC infrastructure, significantly by way 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 outstanding AI cloud firms out there. On July 6, Galaxy introduced it had accomplished Section I at Helios, handing over 133 MW of vital 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 increase highlights the size of capital required for Galaxy to broaden its information middle phase alongside its digital property 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 based on plan, the brand new campus will deliver Galaxy nearer to a multi-site AI/HPC infrastructure mannequin, reasonably than counting on a single campus.
Execution Dangers
Galaxy famous that many challenge milestones stay topic to improvement circumstances, together with allowing, regulatory approvals, building progress, energy interconnection, commissioning, regulatory adjustments, 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 is also affected. That is an industry-wide danger for information facilities, as energy demand for AI grows sooner than grid growth and electrical gear provide chains.
Compute demand can even 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 initiatives nonetheless require long-term contracts, secure tenants, and affordable capital prices to attain 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 further transmission upgrades.
If this progress is maintained, McGregor will mark Galaxy’s subsequent main growth step following Helios. The challenge can even display how successfully the corporate can flip its multi-site AI/HPC information middle technique right into a large-scale enterprise phase.
