Soluna and Applied Digital Plan 50 MW AI Data Center in Texas

Soluna Holdings, Inc. and Applied Digital Corporation (APLD) announced in a press release an agreement to form a joint company that will develop a planned 50 MW AI and high performance computing data center near Silverton, Texas. The facility will be located at Soluna's Project Dorothy 3 site beside the 150 MW Briscoe Wind Farm.

Soluna expects to contribute land and power related assets, while Applied Digital will provide development capital. After the transaction closes, Applied Digital will own 51% of the joint company and Soluna will own 49%. The first phase is expected to draw electricity from the wind farm and the grid.

ChronoScale, a public company majority owned by Applied Digital, signed a nonbinding letter of intent for a triple net lease at the planned facility. The transaction is expected to close by the end of 2026, subject to conditions including a Briscoe County tax abatement, corporate approvals, title policies, leases and power agreements.