Key Takeaways
- • Galaxy Digital acquired approximately 500 acres of land in McGregor, Texas (outside Waco) for more than $7 million, marking the company's second data center campus in the state.
- • The McGregor City Council approved the land sale on Monday, clearing the path for Galaxy Digital's "Project Merlin," a planned $400 million investment in data center infrastructure on the acquired acreage.
- • Galaxy Digital is positioning itself as a major player in AI and cryptocurrency data center development, with this Texas expansion representing significant capital deployment in high-demand computing infrastructure.
- • The company already operates a substantial data complex in West Texas, indicating a strategic build-out of computing capacity across multiple Texas locations to serve enterprise and crypto clients.
Summary
Galaxy Digital, a major data center developer with existing operations in West Texas, has secured a 500-acre parcel in McGregor, Texas (approximately 30 miles south of Waco) following approval by the McGregor City Council. The transaction, which valued the land at more than $7 million, was approved Monday and clears the way for development of the company's second major data center campus in Texas.
The project, internally designated "Project Merlin," represents a planned $400 million capital investment in data center infrastructure. Galaxy Digital intends to develop the full 500-acre site as a campus-style facility, positioning it to serve demand from AI workloads, cryptocurrency operations, and enterprise clients requiring high-density computing capacity. The location in McGregor's industrial park provides Galaxy access to reliable power infrastructure and land suitable for large-scale data hall construction.
This expansion reflects broader industry trends toward geographic diversification of data center capacity, particularly in Texas, which has emerged as a preferred jurisdiction for cryptocurrency and AI infrastructure due to abundant power supply, favorable regulatory treatment, and lower operational costs compared to coastal data center hubs. Galaxy Digital's existing West Texas operations already position the company as a significant player in the regional market, and the McGregor acquisition signals confidence in sustained demand for computing infrastructure in the state.
The approval by McGregor City Council suggests alignment between Galaxy Digital's development plans and local economic interests, with the project expected to generate tax revenue and employment opportunities in the region. The $400 million investment commitment underscores the scale of infrastructure buildout Galaxy Digital envisions for the Texas market over the medium term.
The project, internally designated "Project Merlin," represents a planned $400 million capital investment in data center infrastructure. Galaxy Digital intends to develop the full 500-acre site as a campus-style facility, positioning it to serve demand from AI workloads, cryptocurrency operations, and enterprise clients requiring high-density computing capacity. The location in McGregor's industrial park provides Galaxy access to reliable power infrastructure and land suitable for large-scale data hall construction.
This expansion reflects broader industry trends toward geographic diversification of data center capacity, particularly in Texas, which has emerged as a preferred jurisdiction for cryptocurrency and AI infrastructure due to abundant power supply, favorable regulatory treatment, and lower operational costs compared to coastal data center hubs. Galaxy Digital's existing West Texas operations already position the company as a significant player in the regional market, and the McGregor acquisition signals confidence in sustained demand for computing infrastructure in the state.
The approval by McGregor City Council suggests alignment between Galaxy Digital's development plans and local economic interests, with the project expected to generate tax revenue and employment opportunities in the region. The $400 million investment commitment underscores the scale of infrastructure buildout Galaxy Digital envisions for the Texas market over the medium term.
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