Soluna Holdings, Inc. and Applied Digital Corporation have agreed to develop an AI data center near Silverton, Texas, with a first phase planned for 50 MW of critical IT capacity.
Under the agreement announced Oct. 21, Applied would provide development capital and hold 51% of the venture after closing. Soluna would hold 49% of the venture and contribute part of the Dorothy 3 site, including land and power-related project assets, to it.
Soluna identified ChronoScale Holdings Corporation, in which Applied owns a majority stake, as a prospective tenant. ChronoScale has signed a nonbinding letter of intent; a definitive lease has yet to be negotiated and signed.
The planned first phase would sit beside the 150 MW Briscoe Wind Farm. Soluna expects it to draw electricity from the wind farm and the grid, pending final power agreements. In August, Soluna said it had bought 397 acres for Dorothy 3 and described the larger campus as having potential capacity of up to 300 MW.
Soluna expects the venture transaction to close by year-end. Closing depends on approval of a tax abatement for the project in Briscoe County, as well as title policies, corporate approvals and final operating, lease and power agreements.
