Galaxy Digital buys land for second Texas data center campus near Waco

Galaxy Digital has acquired land in McGregor, Texas, for a second data center campus, according to local reports and company statements from a city council meeting. The site, located in the city’s industrial park near a SpaceX test facility, will be known as Project Merlin.

The company plans to develop up to eight buildings on 500 acres, investing approximately $400 million. The facility will use closed-loop cooling systems to limit water consumption, and Galaxy has agreed to cover costs for infrastructure upgrades in the area.

Project Merlin details and timeline

The McGregor campus is Galaxy’s second site in Texas. Its first campus, the 160-acre Helios facility in Dickens County, was acquired from Argo Blockchain in late 2022 for roughly $65 million. Helios began cryptomining operations in May 2022 after breaking ground in July 2021.

• Last year, CoreWeave committed to leasing the full 800MW approved capacity at Helios, with a 15-year term estimated to generate over $1 billion in average annual revenue.
• Construction for the first phase under the CoreWeave lease is underway, and initial data halls have been handed over.
• With CoreWeave taking over Helios, Galaxy is relocating its mining operations. It signed a 48MW contract at Soluna’s Project Kati data center in Texas.
• Galaxy says the broader 1,500-acre campus in Dickens County has potential to eventually support up to 3.5GW of power.

Strategic shift from mining to AI hosting

Galaxy’s pivot to large-scale AI infrastructure hosting mirrors a wider trend in the industry. Crypto mining firms are repurposing or selling sites to cloud and AI providers that need reliable, high-density power. The CoreWeave deal at Helios is a prominent example, with the lease revenue far exceeding typical mining returns.

For the McGregor site, the company has not yet disclosed anchor tenants or a construction start date. The proximity to SpaceX’s test facility may offer access to existing power and fiber infrastructure, though no formal agreements have been announced. Local officials are expected to finalize the land agreement in coming weeks, with council votes on zoning and incentives possible before the end of the third quarter.