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The crypto-native firm is pouring over $400 million into an AI and high-performance computing facility in McGregor, marking its second major Texas data center play.
Galaxy Digital just locked down nearly 500 acres of land in McGregor, Texas, for a massive new data center campus focused on AI and high-performance computing. The project, internally dubbed Project Merlin, received McGregor City Council approval in a 5-1 vote and will see Galaxy invest more than $400 million into six to eight data center buildings.
The initial phase delivers 74 MW of power capacity, with room to scale significantly beyond that. For a company that built its name in crypto trading and Bitcoin mining, the move is the clearest signal yet that Galaxy sees its future at the intersection of digital assets and artificial intelligence infrastructure.
From Bitcoin mines to AI machines #
This isn’t Galaxy’s first rodeo in the Lone Star State. The company already operates the Helios campus in Dickens County, Texas, which spans over 1,500 acres and boasts more than 1.6 GW of approved ERCOT power capacity. That facility started life as a Bitcoin mining operation before Galaxy pivoted it toward AI and HPC workloads.
Project Merlin will sit on roughly 499 acres of city-owned land that Galaxy is purchasing for more than $7 million. The site benefits from proximity to existing industrial operations in McGregor, a small city about 20 miles southwest of Waco that’s perhaps best known for hosting SpaceX’s rocket testing facility.
What’s actually getting built #
The campus won’t just be rows of servers in a field. Galaxy’s plans include a dedicated electrical substation and a million-gallon water storage tank, both essential for keeping a facility of this scale running reliably.
On the sustainability front, the project will use closed-loop cooling systems designed to minimize water consumption. Sound levels will be maintained at 65 dB or lower at the property line, roughly the volume of a normal conversation.
Construction is expected to begin in the coming months. Once operational, the facility will create more than 30 full-time local jobs with average salaries exceeding $60,000. For a small Texas city, that direct economic injection plus the $7 million-plus land sale revenue represents a significant windfall.
Galaxy trades on the Nasdaq under the ticker GLXY, having completed its US listing process after years of trading primarily on the Toronto Stock Exchange.
Why crypto firms are chasing AI infrastructure #
Galaxy isn’t alone in this pivot. Across the crypto mining industry, companies are racing to repurpose their energy infrastructure for AI workloads. The logic is straightforward: Bitcoin mining taught these firms how to secure cheap power, manage heat dissipation, and operate at scale in remote locations. Those exact same skills are what AI data centers demand.
The difference is the customer base. Instead of earning block rewards from the Bitcoin network, AI infrastructure operators can sign long-term contracts with hyperscalers and enterprise clients who need GPU compute for training and inference.
Helios alone has over 1.6 GW of approved power capacity. For context, a single gigawatt can power roughly 750,000 homes.
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