Galaxy Digital Expands into AI with Texas Campus Acquisition

Galaxy Digital is expanding its AI capabilities with the acquisition of nearly 500 acres in McGregor, Texas. The land will be used for a new campus focused on artificial intelligence (AI) and high-performance computing (HPC) data centers.

The project will be privately financed, including the construction of a substation, to avoid placing infrastructure costs on local electric consumers. Galaxy Digital believes the campus will generate at least $130 million in tax revenue for McGregor by 2028.

The company's plans align with growing demand for computing power in AI, driven by companies shifting from bitcoin mining to providing AI and HPC services. This trend is evident in the conversion of Helios, Galaxy Digital's existing data center in West Texas, which has been expanded to 1.63 GW and leased to CoreWeave for 15 years.

The expansion into AI infrastructure marks a significant shift for Galaxy Digital beyond bitcoin mining. While competitors like Core Scientific and Hut 8 are also investing heavily in the sector, Galaxy Digital's focus on private financing aims to create community-friendly projects that avoid placing costs on local consumers.