Galaxy Digital's AI Campus
Galaxy Digital Acquires 500-Acre Texas Site to Build Major AI Data Center
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Key Points
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Project Merlin: Galaxy Digital's 500-acre McGregor site sits in the McGregor Industrial Park northeast of SpaceX's facility, with the land sale approved to GXMG LLC for roughly 499–500 acres.
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Economic footprint: The development agreement contemplates at least $400 million of long-term capital investment and a property tax base uplift of about $130 million.
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Utility partnership and scale plan: Galaxy will work with Heart of Texas Electric Cooperative and local utility to support interconnection facilities, with initial phase targeting 74 MW and coordination to extend beyond the 75 MW ERCOT large-load threshold.
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Job creation: The project is expected to create at least 30 full-time jobs with a minimum annual salary of $60,000.
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Infrastructure funding by Galaxy: Galaxy will fund and build a private electrical substation on the campus and provide full financial security for incidental upgrades to local infrastructure.
Galaxy Digital has acquired roughly 500 acres in McGregor, Texas, to build a major AI and high-performance computing data center campus, its second big Texas bet after the Helios project in West Texas. The Block reported the site sits inside the McGregor Industrial Park, northeast of SpaceX's facility, and was sold to Galaxy's subsidiary GXMG LLC.
The project, called Project Merlin, will start with a target of 74 megawatts of power. Galaxy plans to scale it to several hundred megawatts by 2030. The company expects power to begin flowing in 2028, with ramp-up continuing as development milestones are met.
A $400 Million Bet on McGregor's Industrial Park
Galaxy's development agreement with the City of McGregor calls for at least $400 million in long-term capital investment, according to Bitcoin.com. The land sale alone will bring the city about $7.5 million in revenue. On top of that, the project is expected to add roughly $130 million to the local property tax base.
The campus will also create at least 30 full-time jobs. Each position must pay a minimum annual salary of $60,000. Construction jobs will come first, with permanent roles following as the campus builds out through the decade.
Galaxy Funds Its Own Grid Upgrades Under New Model
One key feature of Project Merlin is who pays for the power infrastructure. Galaxy will fund and build a private electrical substation on the campus itself. The company will also cover any incidental upgrades to local infrastructure, Data Center Knowledge reported.
Galaxy will work with the Heart of Texas Electric Cooperative to handle interconnection. The initial 74 MW target sits just under ERCOT's 75 MW large-load threshold. Scaling beyond that will require coordination with ERCOT, the state's main power grid operator. Data Center Knowledge noted this reflects a broader shift — AI developers are now expected to fund grid upgrades themselves.
Project Merlin Follows Galaxy's Helios Playbook
Galaxy already operates the Helios facility in West Texas, its first major AI and HPC campus in the state. Project Merlin is framed as the next step in what Galaxy calls a disciplined, multi-campus strategy. The company says the goal is to meet fast-growing demand for AI computing power across multiple sites.
Bloomingbit reported the campus is designed to grow to a multi-hundred-megawatt scale through 2030. Galaxy has not disclosed a single all-in construction cost figure, but the $400 million investment floor and $130 million property tax uplift give a sense of the project's scale.
GLXY Shares Fell 17% Despite Expansion News
The announcement did not lift Galaxy's stock. Bitcoin.com reported that GLXY shares fell 17% around the time of the news. The drop suggests investors may have concerns about the cost and timeline of scaling a brand-new campus alongside existing projects.
Still, Galaxy pressed forward with its growth pitch. The company sees AI and HPC demand as a long-term tailwind. Project Merlin, with power starting in 2028 and full ramp-up beyond that, is built for a horizon well past the current market mood.
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