Overview
- Galaxy secured roughly 499–500 acres and won a 5–1 City Council vote Tuesday to develop Project Merlin as a multi-building AI and high-performance computing campus.
- The initial build is planned as a roughly 74-megawatt phase with Galaxy publicly committing more than $400 million, a private electrical substation, a million-gallon water tank, and closed-loop cooling to limit water use.
- Galaxy agreed to underwrite needed utility and water upgrades under the development pact so costs do not fall on local ratepayers, and the land sale generated about $7–7.5 million for McGregor.
- Investors reacted negatively to the announcement with GLXY shares falling about 8%, while Galaxy continues larger financing and buildout work at its Helios campus that already holds over 1.6 GW of ERCOT-approved power.
- The project aims to scale to multiple hundreds of megawatts through 2030 but depends on transmission upgrades, long-term tenant leases and significant construction financing, which are the main execution risks for the plan.