Soluna Holdings and Applied Digital have entered into a definitive agreement to establish a joint venture to build a 50MW critical IT data centre in Texas, US.
The planned facility will cater to AI and high-performance computing (HPC) workloads.
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Situated at Soluna’s Project Dorothy 3 development site near Silverton in Briscoe County, the development will be co-located with the 150MW Briscoe Wind farm, alongside the company’s existing Dorothy 1 and Dorothy 2 sites.
Under the terms of the agreement, Applied Digital is set to own a 51% stake in the joint venture, whilst Soluna Holdings will retain the remaining 49%.
To support the joint business, Soluna Holdings will supply land and power-related assets from Dorothy 3, and Applied Digital will contribute funding for development.
Subject to definitive documentation, the first 50MW critical IT phase of the data centre will draw electricity from both the neighbouring wind installation and the electrical grid.
Furthermore, ChronoScale Holdings, a publicly traded accelerated compute platform majority-owned by Applied Digital, has signed a non-binding letter of intent to lease the upcoming facility.
The potential tenancy remains dependent on the drafting and signing of definitive documents, with no certainty that a final agreement will be reached on the outlined terms or at all.
Completion of the joint venture transaction is targeted by the end of the calendar year.
Closing is contingent upon several conditions precedent, such as securing Briscoe County tax abatement approval, obtaining title policies, securing corporate consents, and finalising operating agreements, definitive leases, and power contracts.
Soluna CEO John Belizaire said: “We have said for a long time that the constraint in AI is energy access, not chips. 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 centres.
“We look forward to completing the remaining steps, including the tax abatement process in Briscoe County, and to bringing this project forward with the local community.”
In June this year, Applied Digital entered into a long-term lease agreement for a 210MW data centre at Delta Forge 2 in the US, increasing its portfolio of AI Factory campuses to five.
