Soluna, Applied Digital to build wind-powered AI data center in Texas

Soluna Holdings, Inc. (Nasdaq: SLNH) and Applied Digital Corporation (NASDAQ: APLD) have signed a definitive agreement to form a jointly owned company for the development of a 50 MW critical IT data center in Briscoe County, Texas. The facility, designated as Project Dorothy 3, will be co-located with the Briscoe Wind Farm and is intended to support artificial intelligence and high-performance computing workloads.

According to the Transaction Agreement, Soluna will provide part of the Dorothy 3 location, encompassing the land and associated power assets, while Applied will supply the necessary funding for development. Upon closing, Applied is expected to hold a 51% interest in the Project Company, with Soluna retaining the remaining 49%. The transactions are anticipated to close by the end of the calendar year, subject to conditions precedent that include the approval of a tax abatement in Briscoe County, receipt of title policies, and the execution of an operating agreement.

Project Dorothy 3 is planned to draw power from both the 150 MW Briscoe Wind Farm and the grid during its first phase. The site is located near Soluna's existing Dorothy 1 and Dorothy 2 projects. John Belizaire, CEO of Soluna, stated that the partnership puts the company's strategy of bringing load to generation into practice, combining Soluna's site and wind power with Applied's role as a builder and operator of AI data centers.

ChronoScale Holdings Corporation (Nasdaq: CHRN), an accelerated compute platform majority-owned by Applied, has signed a non-binding letter of intent to lease the planned facility on a triple-net basis. This lease remains subject to the negotiation and execution of definitive documentation, with no assurance that a final lease will be entered into on the contemplated terms. Soluna noted that the announcement contains forward-looking statements regarding the ability to complete construction, secure financing, and operate the project as planned.