Soluna and Applied Digital Form Joint Venture to Build 50 MW Wind-Powered AI Data Center in Texas

Soluna Holdings has entered into a definitive agreement with Applied Digital Corporation to form a jointly owned project company that will develop a planned 50 MW critical IT data center for AI and high-performance computing applications at Soluna's Project Dorothy 3 site near Silverton in Briscoe County, Texas. The facility will be co-located with the 150 MW Briscoe Wind Farm, marking a significant step in the industry's push to pair renewable energy generation directly with the power-intensive demands of artificial intelligence infrastructure.

The transaction reflects a growing recognition across the data center sector that energy access, rather than semiconductor supply, has become the binding constraint on AI development. Under the agreement, Soluna will contribute a portion of the Dorothy 3 site, including land and power-related project assets, to the project company, while Applied Digital will provide capital to support development. Upon closing, Applied is expected to hold a 51% controlling interest in the project company, with Soluna retaining the remaining 49%. Phase 1 of the planned facility is expected to draw power from both the Briscoe Wind Farm and the grid, subject to definitive documentation.

"We have said for a long time that the constraint in AI is energy access, not chips," said John Belizaire, CEO of Soluna. "We built Soluna to bring load to the generation, so the power would be ready when the demand arrived. Partnering with Applied at Dorothy 3 puts that strategy to work: our site and wind power, combined with a proven builder and operator of AI data centers." Belizaire added that the company looks forward to completing the remaining steps, including the tax abatement process in Briscoe County, and to bringing the project forward with the local community.

In a related development, ChronoScale Holdings Corporation, an accelerated compute platform majority-owned by Applied Digital and purpose-built to support demanding AI workloads, has signed a non-binding letter of intent to lease the planned facility. The lease remains subject to the negotiation and execution of definitive documentation. The closing of the transactions contemplated by the transaction agreement is subject to certain conditions precedent, including approval of a tax abatement for the project in Briscoe County, receipt of title policies, obtaining certain corporate approvals, successful negotiation and execution of the operating agreement for the project company, definitive leases, power agreements and other customary conditions. The transactions are expected to close by the end of the calendar year.

The partnership underscores a broader industry trend of co-locating AI data centers with dedicated renewable energy sources to secure reliable power at scale. As AI and HPC workloads continue to surge, developers are increasingly seeking sites where generation capacity can be dedicated to computing infrastructure, reducing exposure to grid congestion and interconnection delays. By combining Soluna's renewable-powered site development expertise with Applied Digital's track record as a builder and operator of AI data centers, the venture aims to bring new capacity online in a region where wind resources are abundant and power demand from the technology sector is rising rapidly.