Galaxy Digital (Nasdaq: GLXY) has acquired about 500 acres in McGregor, Texas, for its second major artificial intelligence and high-performance computing campus in the state. The public company <a href="https://www.prnewswire.com/news-releases/galaxy-expands-data-center-footprint-with-acquisition-of-500-acre-campus-in-mcgregor-texas-302836014.html" rel="noopener noreferrer nofollow">announced</a> the purchase on July 28.
The first phase is expected to provide 74 megawatts of capacity, with power delivery targeted for 2028. Galaxy said the site could expand into a multi-hundred-megawatt campus through 2030.&nbsp;
The project marks another major bet on infrastructure for AI workloads, extending Galaxy's transformation from a crypto-focused company and <a href="https://www.thestreet.com/crypto/explained/what-is-bitcoin-mining-explained" rel="noopener noreferrer nofollow">Bitcoin miner</a> into a large-scale data center developer.
<a href="https://www.thestreet.com/crypto/markets/worlds-most-profitable-airline-now-accepts-crypto-payments-for-flights" rel="noopener noreferrer nofollow">Related: World's most profitable airline now accepts crypto payments for flights</a>
<h2 id="former-bitcoin-miner">Former Bitcoin miner</h2>
Galaxy <a href="https://www.galaxy.com/newsroom/galaxy-to-acquire-helios-bitcoin-mining-facility-from-argo-blockchain" rel="noopener noreferrer nofollow">acquired</a> the Helios Bitcoin mining facility from Argo Blockchain in December 2022, saying at the time the deal would expand its mining operations and cut its reliance on third-party hosting.
The company <a href="https://primexbt.com/news/galaxy-turns-a-texas-bitcoin-mine-into-a-1b-ai-power-business-at-helios/" rel="noopener noreferrer nofollow">later wound down mining</a> at Helios as demand for AI computing accelerated, converting the West Texas site into an AI and HPC campus under a long-term agreement with cloud provider CoreWeave.&nbsp;
Helios has since become Galaxy's flagship data center campus, with more than 1.6 gigawatts of approved capacity and 133 MW of critical IT load delivered to CoreWeave.&nbsp;
Galaxy also <a href="https://finance.yahoo.com/technology/ai/articles/galaxy-digital-plans-3-507-143713956.html" rel="noopener noreferrer nofollow">announced plans on July 22</a> to raise about $3.5 billion through secured notes to support the second phase of Helios.
<figure><img src="https://www.thestreet.com/.image/c_fit%2Ch_675%2Cw_1200/MjI1MTAzOTIyMzI5NTYxMDUy/gettyimages-2270237750.jpg" height="675" width="1013">
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 Rows of servers inside a data center. Image used for illustrative purposes only.
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<h3 id="trending-on-thestreet-roundtable">Trending on TheStreet Roundtable:</h3>
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<h2 id="texas-attracts-another-major-data-center">Texas attracts another major data center&nbsp;</h2>
Texas offers large power markets, available land and established energy infrastructure — factors that have helped make the state a center for <a href="https://www.thestreet.com/crypto/tags/bitcoin" rel="noopener noreferrer nofollow">Bitcoin</a> mining and, increasingly, AI data centers. Galaxy said the McGregor campus would create construction and permanent jobs and expand the local tax base; the city received about $7.5 million from the land sale.
Galaxy is led by chief executive Mike Novogratz, a former Goldman Sachs partner and macro hedge fund manager who became one of the earliest Wall Street heavyweights to stake his reputation on Bitcoin — a pedigree that has earned him a reputation as a Wall Street legend turned crypto bull.
<blockquote>
 "The demand for compute is a structural shift, not a passing cycle."— Mike Novogratz, CEO, Galaxy Digital
</blockquote>
Galaxy is not alone in repurposing crypto infrastructure for AI. Core Scientific <a href="https://investors.corescientific.com/news-events/press-releases/detail/74/core-scientific-to-provide-approximately-200-mw-of-infrastructure-to-host-coreweaves-high-performance-computing-services-capturing-significant-ai-compute-opportunity" rel="noopener noreferrer nofollow">agreed to provide</a> hundreds of megawatts to CoreWeave, while Hut 8 has signed <a href="https://www.reuters.com/technology/hut-8-signs-98-billion-ai-data-center-lease-fully-commercializes-texas-campus-2026-07-20/" rel="noopener noreferrer nofollow">multiyear leases</a> for large AI campuses.
<h2 id="a-growing-backlash">A growing backlash</h2>
Data centers have become a flashpoint across Texas.&nbsp;
In McGregor itself, residents recently submitted a petition to <a href="https://www.kxxv.com/news/local-news/in-your-neighborhood/mcgregor-residents-submit-petition-to-recall-mayor-over-data-center-water-concerns" rel="noopener noreferrer nofollow">recall Mayor Jim Lilley</a>, an effort centered on a data center project, the city's water supply and whether officials were transparent in approving it.&nbsp;
(The recall coverage does not specify whether it targets Galaxy's newly announced campus or a separate McGregor project.)
The anger is statewide.&nbsp;
<figure>
 <figcaption>
 Demonstrators hold up "Stop Data Centers" signs as US President Donald Trump, not pictured, speaks at the General Motors Proving Ground testing facility in Milford, Michigan, US, on Monday, July 27, 2026. Trump championed his economic agenda, including tariffs and the rolling back of environmental regulations, saying they had revived US auto manufacturing, during a visit to a General Motors Co. facility in the midterm battleground of Michigan. Photographer: Sarah Rice/Bloomberg via Getty Images
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Residents in Texarkana <a href="https://www.thecooldown.com/green-tech/texarkana-residents-rally-against-data-center/" rel="noopener noreferrer nofollow">rallied against a proposed 500-acre data center</a> over water use and noise; El Paso residents held a <a href="https://www.ktsm.com/news/el-paso-meta-data-center-protest/" rel="noopener noreferrer nofollow">"block party protest"</a> against Meta's $10 billion AI campus, which could draw up to 2.5 million gallons of water on hot days; Guadalupe County homeowners have <a href="https://www.ksat.com/news/local/2026/07/24/data-centers-draw-backlash-lawsuit-in-guadalupe-county-as-residents-raise-transparency-concerns/" rel="noopener noreferrer nofollow">filed a lawsuit</a> over transparency; and ranchers and farmers have <a href="https://www.wfaa.com/article/news/state/texas-news/ranchers-and-farmers-rally-at-the-texas-capitol-pressing-for-a-pause-on-data-centers/287-eae1e8b2-efac-4a7e-9b78-c20a09c1f795" rel="noopener noreferrer nofollow">rallied at the Texas Capitol</a> pressing for a pause.&nbsp;
<a href="https://www.bloomberg.com/news/features/2026-05-21/small-town-texas-rebels-against-data-centers-in-growing-backlash" rel="noopener noreferrer nofollow">Bloomberg reported</a> the backlash has grown so intense that some Texans are "asking Jesus for help." The complaints are consistent: the water and electricity AI data centers consume, higher power bills for neighbors, noise, and a lack of public input.
At the time of writing, Galaxy Digital shares <a href="https://finance.yahoo.com/quote/GLXY/" rel="noopener noreferrer nofollow">traded</a> at $20.97, down 7.62% on the day. Core Scientific fell 1.11% to $20.51, while Hut 8 slipped 1.79% to $102.72.
<a href="https://www.thestreet.com/crypto/markets/morgan-stanley-rolls-out-new-crypto-funds-that-reward-you-for-holding" rel="noopener noreferrer nofollow">Related: Morgan Stanley rolls out new crypto funds that reward you for holding</a>

Wall Street legend's firm buys 500 acres of land in Texas amid protests

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