Galaxy Digital Expands AI Infrastructure in Texas
Galaxy Digital is building a second Texas AI and high-performance computing campus, expanding its infrastructure strategy beyond Bitcoin mining.
The race to build artificial intelligence infrastructure is reshaping the cryptocurrency mining industry, and Galaxy Digital is the latest company to deepen its commitment to the sector. The digital asset firm has unveiled plans for a second large-scale AI and high-performance computing (HPC) data center campus in Texas, expanding its infrastructure footprint beyond its flagship Helios facility.
The new development underscores a broader trend across the industry, where former Bitcoin mining operators are increasingly repurposing power infrastructure to serve the rapidly growing demand for AI computing capacity.
Galaxy Plans New AI Campus in McGregor
Galaxy Digital announced on July 28 that it has acquired approximately 500 acres in McGregor, Texas, where it intends to develop a privately funded AI and HPC campus in partnership with the City of McGregor and local stakeholders.
The project will begin with an initial 74-megawatt phase, which is expected to receive electricity in 2028. Galaxy said the site is designed for long-term expansion, with the campus capable of reaching multiple hundreds of megawatts by 2030.
To reduce the burden on local residents, the company said the development will include a privately funded electrical substation, preventing infrastructure costs from being passed on to utility customers.
According to Galaxy, the project is expected to contribute at least $130 million to McGregor’s local tax base, while also supporting new employment opportunities and infrastructure investment.
“We’ve spent the last several years proving in Dickens County that a privately funded data center can be a real, long-term partner to a rural community, adding to the tax base, funding local infrastructure, and creating jobs,” said Mike Novogratz, Founder and CEO of Galaxy.
“McGregor is the next step in our strategy to build a disciplined, multi-campus data center business.”
AI Infrastructure Becomes a Core Growth Strategy
The McGregor project builds on Galaxy’s broader transition from Bitcoin mining toward AI infrastructure.
The company acquired its Helios Bitcoin mining campus in Texas in 2022 and has steadily repositioned the facility for high-performance computing workloads. Earlier this year, ERCOT, Texas’ grid operator, approved plans allowing Helios to expand to 1.63 gigawatts of capacity, which has already been leased to CoreWeave under a 15-year agreement.
Separately, reports last week indicated Galaxy is seeking to raise approximately $3.5 billion through its inaugural high-yield bond offering to finance the next expansion phase of the Helios campus supporting CoreWeave.
Highlighting the company’s long-term outlook, Novogratz said:
“The demand for compute is a structural shift, not a passing cycle, and we believe the right way to meet it is by building infrastructure that strengthens the communities that host it.”
Crypto Miners Continue Pivoting Toward AI
Galaxy Digital is far from alone. As AI computing demand continues to outpace available infrastructure, many North American Bitcoin mining companies are expanding into AI-focused hosting and HPC services.
Recent developments across the sector include:
- Core Scientific announced on July 28 that AMD will secure more than 500 MW of its computing capacity beginning in 2027, with potential expansion to 2.5 GW. The company has already committed roughly 590 MW of compute capacity to CoreWeave across several locations.
- Reports from the Financial Times also indicated that Nvidia has signed lease agreements worth up to $50 billion for Hut 8’s 1 GW Beacon Point campus in Texas.
- Earlier this month, CleanSpark revealed a 20-year AI data center lease projected to generate $6.6 billion in contracted revenue, significantly expanding beyond its traditional Bitcoin mining operations.
- TeraWulf also entered the AI infrastructure market through a 20-year agreement with Anthropic, a partnership expected to produce approximately $19 billion in contracted lease revenue over its duration.
- IREN and Hut 8 have likewise announced multi-billion-dollar AI infrastructure initiatives, reinforcing an industry-wide shift toward high-performance computing services.
Together, these projects illustrate how existing energy infrastructure originally built for cryptocurrency mining is increasingly being repurposed to support AI workloads, creating a new revenue model for mining companies.
Economic Benefits Meet Growing Political Scrutiny
While investment in AI infrastructure continues to accelerate, large-scale data center developments have also attracted increasing public attention.
Critics have raised concerns over electricity consumption, water usage, noise pollution, and the potential impact on local utility costs. Earlier this month, New York became the first U.S. state to approve a temporary one-year moratorium on new data center construction, reflecting growing debate over the industry’s environmental and community impact.
Supporters, however, argue that projects such as Galaxy’s McGregor campus provide lasting economic value by creating construction jobs, expanding municipal tax revenues, and funding local infrastructure improvements without shifting development costs onto residents.
As competition to build AI infrastructure intensifies, cryptocurrency mining companies are rapidly evolving into large-scale digital infrastructure providers. Galaxy Digital’s second Texas campus signals that this transformation is no longer experimental—it is becoming a defining strategy for the industry’s next phase of growth.
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