Galaxy Digital (GLXY) shares tumbled over 8% to $20.86 after the company announced the acquisition of roughly 500 acres in McGregor, Texas for its second large-scale artificial intelligence and high-performance computing data center campus. The project, developed with the City of McGregor and local partners, marks a significant expansion of Galaxy's AI infrastructure footprint beyond the existing Helios campus in West Texas.
The initial phase will deliver 74 megawatts of power capacity, expected to come online in 2028 after necessary transmission upgrades. Galaxy aims to scale the site to a multi-hundred-megawatt campus by 2030, with a privately funded electrical substation ensuring that local ratepayers are insulated from infrastructure costs. The company emphasized the project will add at least $130 million to the local tax base and create hundreds of construction jobs, mirroring its community-focused model from Dickens County. CEO Mike Novogratz stated that demand for compute is a structural shift, and the McGregor campus is the next step in building a disciplined, multi-campus data center business.
The broader market saw declines alongside GLXY, with other mining stocks such as IREN, HUT, and WULF dropping between 6.6% and over 8%, while Coinbase and bitcoin fell more than 2%. The data center race continues to intensify: Core Scientific announced that AMD will secure over 500 MW of its capacity starting in 2027, and reports indicated Nvidia signed leases worth up to $50 billion for Hut 8's Beacon Point campus in Texas. However, the expansion faces increasing scrutiny, as New York recently became the first state to approve a temporary moratorium on new data center construction, citing environmental and community concerns.
