Galaxy mentioned on July 28 that it has acquired roughly 500 acres of land in McGregor, McLennan County, Texas, below a growth settlement with the Metropolis of McGregor, to construct and function an information heart campus serving synthetic intelligence and high-performance computing within the McGregor Industrial Park.
This marks Galaxy’s second main knowledge heart funding in Texas, following its Helios campus in West Texas. The venture exhibits that the corporate is increasing additional into AI infrastructure, amid quickly rising compute demand and intensifying competitors amongst knowledge heart builders for land, energy, and deployment pace.
Galaxy is increasing its knowledge heart footprint. We have executed a growth settlement and bought 500 acres in McGregor, Texas, for the development and operation of an AI and HPC knowledge heart 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 growth, beginning with 74 MW and with potential for important enlargement as soon as further transmission infrastructure is accomplished. Galaxy mentioned the venture is being developed with the McGregor Financial Improvement Company and Coronary heart of Texas Electrical Cooperative, with which the corporate has signed service agreements to help required interconnection gadgets.
The primary section 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 section into the larger-scale knowledge heart asset class throughout the firm’s portfolio.
Galaxy said the campus can 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 knowledge heart tasks, energy, interconnection, and commissioning gadgets typically decide operational pace simply as a lot as bodily facility development.
This method can also be supposed to mitigate value impacts on native electrical energy customers. In line with Galaxy, its non-public infrastructure funding and monetary assurances are designed to forestall 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 at the least $130 million to the native actual property tax base.
Through the development section, the venture is anticipated to create jobs for a number of hundred development employees and engineering companions. As soon as operational, the campus would require a everlasting crew to handle knowledge heart operations, preserve energy infrastructure, cooling, safety, and bodily services.
Galaxy said 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 would fund further water infrastructure gadgets below the event settlement.
For McGregor, key indicators within the coming years can 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 belongings sector, however lately has pushed aggressively into AI/HPC infrastructure, notably 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 at present 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 available in the market. On July 6, Galaxy introduced it had accomplished Part I at Helios, handing over 133 MW of crucial 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 knowledge halls in Dickens County. This capital increase highlights the size of capital required for Galaxy to increase its knowledge heart 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 knowledge heart enterprise. If executed in response to 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 venture milestones stay topic to growth situations, together with allowing, regulatory approvals, development progress, energy interconnection, commissioning, regulatory modifications, and AI/HPC market situations.
For McGregor, the timeline to energise the primary section in 2028 would be the most crucial milestone. If interconnection or transmission infrastructure is delayed, the campus’s ramp-up timeline may be affected. That is an industry-wide threat for knowledge facilities, as energy demand for AI grows sooner than grid enlargement and electrical tools 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, steady 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 development steps earlier than the McGregor campus can obtain energy. The corporate expects the primary section 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 enlargement step following Helios. The venture may even show how successfully the corporate can flip its multi-site AI/HPC knowledge heart technique right into a large-scale enterprise phase.
